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2025-03-31-accounts

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THE SALVATION ARMY
INTERNATIONAL TRUST
35TH REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2025
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a Front-cover photo: Reshma and her daughter in Bangladesh. She is an artisan working with Others – a Salvation Army project which is transforming lives through job creation and the fght against poverty[]

International Headquarters exists to support the General as he/she leads The Salvation Army to accomplish its God-given worldwide mission to preach the gospel of Jesus Christ and meet human needs in his name without discrimination.

THE SALVATION ARMY

International Headquarters 101 Queen Victoria Street London EC4V 4EH

THE SALVATION ARMY

WORLDWIDE FACTS & FIGURES

GENERAL INFORMATION

Countries and territories where SA serves 134 Corps, outposts, societies, new plants and recovery churches 14,495 Goodwill centres 133 Officers 25,840 Active 15,908 Retired 9,932 , Auxiliary-Captains 315 994 Envoys/sergeants/non-officer personnel, full-time Cadets 729 Employees 109,215

THE SALVATION ARMY MEMBERSHIP

Senior soldiers 1,260,832 Adherents 176,663 Junior soldiers 399,344

SOCIAL PROGRAMMES

CORPS PROGRAMMES

Senior band musicians 28,491 Senior songsters 103,394 Other senior musical group members 112,981 Senior and young people’s local officers 157,272 Women’s Ministries (all groups) members 710,618 League of Mercy – members 186,439 SA Medical Fellowship – members 9,805 Over-60 clubs – members 52,589 Men’s fellowships – members 132,510 Young people’s bands – members 15,419

Young people’s singing companies – members 162,079 Other young people’s music groups – members 114,924 Corps cadets 39,408 Sunday schools – members 597,595 Junior youth groups (Scouts, Guides, etc., and clubs) – members 194,006

Senior youth groups – members 202,870 Parent and toddler groups 862

Capacity 64,461

Corps-based community development programmes 53,148 Beneficiaries/clients 664,263 Thrift stores/charity shops (corps/territorial/social) 2,561 Recycling centres 38

ADDICTION DEPENDENCY

Non-residential programmes 116 Capacity 1,093 Residential programmes 180 Capacity 11,314 Harbour Light programmes 22 Capacity 1,317

Other services for those with addictions 68 Capacity 1,892

Residential accommodation for the homeless 10,611 Capacity 44,691 Children’s homes 211 Capacity 6,400 Homes for elderly persons 146 Capacity 10,649 Homes for disabled persons 41 Capacity 1,420 Homes for blind persons 3 Capacity 96

Remand and probation homes 133 Capacity 1,062 Mother and baby homes 92 Capacity 918 Training centres for families 52 Capacity 551 Care homes for vulnerable people 599 Capacity 2,200

Other residential care homes/hostels 20 Capacity 721

EDUCATION PROGRAMMES

Pre-school/kindergarten/sub-primary 709 Primary schools 1,217 Secondary and high schools 464 Colleges and universities 17 Vocational training schools/centres 52 Pupils 560,193 Teachers 21,228

Schools for blind students (included in above totals) 19 Schools for disabled students (included in above totals) 39 Boarding schools (included in above totals) 111 Staff training and development centres 138 Learning centres 9

4 35TH ANNUAL REPORT AND ACCOUNTS

Source of aggregate statistics for Salvation Army territories: The Salvation Army Year Book 2025 (as recorded at 1 January 2024)

SERVICES TO THE COMMUNITY

HEALTH PROGRAMMES

General hospitals 27 Capacity 2,223 Hospice long-term care 6 a Capacity 95 Maternity hospitals 40 Capacity 1,037 Other specialist hospitals 66 Capacity 589 Specialist clinics 22 Capacity 3,364 General clinics/health centres 107 Mobile clinics/community health posts 1,704 Inpatients 134,228 Outpatients 1,314,317 Doctors/medics 5,441 Non-medical staff 1,825 Invalid/convalescent homes 3 Capacity 88 Health education programmes (HIV/Aids, etc.) 94 Beneficiaries 160,836 Day care programmes 41

SERVICES TO THE ARMED FORCES

Mobile units for service personnel 15 Chaplains 55

Community centres 430 Capacity 429,308 Day centres for the elderly 54 Capacity 2,254 Day centres for street children 10 Capacity 1,053 Day nurseries 494 Capacity 44,488 Drop-in centres for youth 181 Capacity 8,288 Other day care centres 116 Capacity 5,583 Prisoners visited 45,297 Prisoners helped on discharge 19,337 Police courts – people helped 40,091 Missing persons – applications 2,413 Number traced 2,891

Night patrol/anti-suicide – number helped 213,879 Employment bureaux – applications 67,087 Initial referrals 55,138

Counselling – people helped 260,431 General relief – people helped 10,873,524 Emergency relief (disasters) – people helped 596,155 Emergency mobile units 1,318 Feeding centres 1,703 Restaurants and cafés 227 Apartments for elderly 1,190 Capacity 3,546 Hostels for students, workers, etc. 42 Capacity 3,220 Land settlements (capacity) 3 Social Services summer camps 305 Participants 13,112

EMERGENCY DISASTER RESPONSE

Disaster rehabilitation schemes 99 Participants 36,531 Refugee programmes – host country 73 Participants 248,932 Refugee rehabilitation programmes 61 Participants 106,337 Other response programmes 31 Participants 41,190

35TH ANNUAL REPORT AND ACCOUNTS 5

Foreword by General Lyndon Buckingham

Greetings in the name of our Lord and Saviour Jesus Christ! I commend to you this edition of The Salvation Army International Trust (‘SAIT’) Annual Report. Thank you to all who played a role in its production.

The facts and figures contained in this report are more than just numbers. They tell a story – a story of God’s plan and providence, of his compassion and care. They tell of God’s people doing his work; his hands and feet working and serving for the benefit of all.

The Army has always been about holistic ministry: seeking salvation, restoration and wholeness for soul, mind and body. Our International Mission Statement declares our intent: ‘To preach the gospel of Jesus Christ and to meet human needs in his name without discrimination.’ We have sometimes been called ‘Christianity with its sleeves rolled up’. An Army of people that sees a need – and gets to work.

Compass, our Global Strategic Framework, is designed to help us in our work. It points the way, guides us and challenges us to a focused, sustainable mission. People. Mission. Legacy. The way forward.

In the days ahead, the worldwide Army is initiating many of the recommendations that have come through the Compass workstreams. I am grateful to The Salvation Army International Trustee Company (‘SAITCo’) for playing its part.

As I read through the following pages, my heart is drawn to the words of the apostle Paul, ‘I thank my God every time I remember you. In all my prayers for all of you, I always pray with joy because of your partnership in the gospel from the first day until now, being confident of this, that he who began a good work in you will carry it on to completion until the day of Christ Jesus’ (Philippians 1:3-6).

This is indeed my prayer. I am grateful for the officers, soldiers, staff, volunteers, friends and donors who make our work possible. And I thank you, the reader, for your support, encouragement and partnership in the gospel.

Yours in his service,

Lyndon Buckingham GENERAL

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Foreword by the Chief of the Staff Commissioner Edward Hill

As Chair of the Board of Directors of The Salvation Army International Trustee Company (‘SAITCo’), I am pleased to present the 2024/25 Annual Report, reflecting our continued commitment to stewardship, governance and mission fulfilment.

The Salvation Army International Trust (‘the Trust’) exists to advance the Christian faith and meet human need worldwide, underpinning the work of The Salvation Army and supporting the strategic direction of International Headquarters (‘IHQ’). In a world marked by increasing complexity and need, The Salvation Army’s global work remains essential and deeply valued. I am grateful for the wise and conscientious management of resources that enables sustained, high-quality service delivery.

Reliance Bank Limited (‘the Bank’), a wholly owned subsidiary of the Trust, has undergone significant strategic transformation since 2018, shifting its focus to social impact lending. Backed by capital investment from the Trust, the Bank emerged from a challenging period of investment and market volatility to achieve profitability in 2022/23. In 2023/24, the Bank recorded a pre-tax profit of £1.9 million and a further £1.4 million in 2024/25. It plays a vital role in supporting more than 30 global Salvation Army territories, offering secure, multi-currency banking services, and also donates a proportion of its net taxable profits to support the Trust. In 2024/25, governance of the Bank was strengthened with the formation of the Reliance Bank Shareholder Committee of SAITCo, enhancing information flow and strategic oversight.

The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited (‘the Leaders’ Training College’), also a wholly owned subsidiary of the Trust and established as a separate legal entity in Kenya in 2020, continues to provide training for African Salvation Army leaders and reports through the Trust’s group accounts.

SAITCo’s governance is structured through several internal boards (Finance, Business, Projects) and informed by rigorous internal and external audit processes. Reforms initiated since 2019 have strengthened board operations, policies and accountability, with ongoing benchmarking to the Charity Governance Code. Further enhancements, including strategic planning initiatives and a full board performance review, are planned for 2025/26.

Our risk management framework is comprehensive, with a regularly updated Risk Register, strengthened climate risk considerations and extensive internal audit functions. The roll-out of cloud-based accounting systems by 2025/26 will support improved financial transparency and oversight across financially supported territories.

We remain committed to equitable remuneration practices, guided by independent benchmarking, a transparent pay structure and a commitment to Living Wage Foundation standards. Staff remuneration is subject to regular cost-ofliving and other reviews.

Full financial and operational details for the Trust and its subsidiaries – Reliance Bank and the Leaders’ Training College – are provided in the 2024/25 group accounts.

I extend my sincere thanks to my fellow SAITCo Directors for their expertise, diligence and steadfast support. Their contributions have positioned the Trust to meet its responsibilities with confidence and purpose. Together, we are ensuring that The Salvation Army remains well-equipped to advance its mission and bring meaningful, lasting impact around the world.

Sincerely yours,

Edward Hill CHIEF OF THE STAFF

35TH ANNUAL REPORT AND ACCOUNTS

7

THE SALVATION ARMY INTERNATIONAL TRUST

TRUSTEE’S REPORT

The Trustee is pleased to present the annual report for The Salvation Army International Trust (referred to as ‘the Trust’ or ‘SAIT’) for the year ended 31 March 2025.

STRUCTURE, GOVERNANCE AND MANAGEMENT

17

63

65

8

16

45

62

66

The SAITCo Directors who served throughout the period under review and to the date of approval of this report and accounts are as follows:

SAITCO DIRECTORS

Commissioner Keith Conrad Commissioner Edward Hill MDiv, MACE Commissioner Lyn Hills Commissioner Debbie Horwood Commissioner Eva Kleman Commissioner John Kumar Dasari Commissioner Robyn Maxwell Commissioner Kenneth Maynor Commissioner Susan McMillan BCom, MBA, FCPA, FCGA Commissioner Garth Niemand MBA, BTh Commissioner Suresh Pawar Commissioner Kelvin Pethybridge ThA, BA, MA Commissioner Widiawati Tampai BTh Lieut-Colonel Judith Hilditch BSc, MSc Ms Rosie Bichard GCB.D, CFA Mr Robin Foale Mr James Gardner MA Mr Mark Goodale BA, FIA Mr Robert Lister Mr Tim Sketchley BA, MA (Cantab), FRICS

from 1 August 2019 from 1 May 2021 from 2 July 2024 from 1 July 2021 from 1 November 2020 to 30 June 2024 from 2 April 2024 from 1 November 2020 to 31 May 2025 from 2 September 2023 from 17 July 2023 to 28 February 2025 from 3 September 2023 from 12 November 2020 to 1 April 2024 from 1 September 2025 from 1 June 2025 from 1 March 2025 from 1 January 2025 from 1 May 2019 from 1 May 2022 from 1 May 2019 from 1 January 2016 to 31 December 2024 from 1 May 2022

AUDIT COMMITTEE MEMBERS

Ms Rosie Bichard GCB.D, CFA (Chair) Mr Mark Goodale BA, FIA Mr Tim Sketchley BA, MA (Cantab), FRICS Mr Andrew Stickland BA (Hons), FCA

PRINCIPAL OFFICERS

Commissioner Garth Niemand MBA, BTh Dr Matthew Carpenter BA, MBA, DBA, MCMI Commissioner Susan McMillan BCom, MBA, FCPA, FCGA Lieut-Colonel Judith Hilditch BSc, MSc

Managing Director Company Secretary Head of Finance to 28 February 2025 Head of Finance from 1 March 2025

BANKERS

HSBC Bank plc 60 Queen Victoria Street London EC4N 4TR

Reliance Bank Limited Faith House, 23–24 Lovat Lane London EC3R 8EB

National Westminster Bank 38 Strand London WC2N 5JB

SOLICITORS

Slaughter and May 1 Bunhill Row London EC1Y 8YY

AUDITORS

Forvis Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton SM1 1FS

INVESTMENT MANAGER

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU

35TH ANNUAL REPORT AND ACCOUNTS 9

The Trust exists to further the work of The Salvation Army and of its International Headquarters (‘IHQ’), which is to advance the Christian religion and meet human need as and where it occurs throughout the world. The operation of IHQ is therefore an integral part of the work of the Trust. IHQ is responsible for coordinating the international work and overseeing strategy.

The Salvation Army is, for administrative purposes, divided into autonomous territories (generally by region or country). Each territory is governed, through local registration(s), in accordance with the applicable local laws, and the Trust works with and through these separate legal entities. However, The Salvation Army remains under the oversight, direction and control of the General of The Salvation Army, as set out in greater detail in The Salvation Army Act 1980.

CONNECTED ENTITIES

The Salvation Army Retired Officers’ Allowance Scheme

Registered Charity No. 1153681 Declaration of Trust dated 13 December 2012

The Salvation Army Retired Officers’ Allowance Scheme is a separately registered charity that is administered by SAITCo as the Trustee.

The objectives of The Salvation Army Retired Officers’ Allowance Scheme are to relieve the poverty of retired officers and the financial hardship among elderly retired officers of The Salvation Army anywhere in the world.

The Salvation Army in the United Kingdom and the Republic of Ireland

The work of The Salvation Army in the United Kingdom and the Republic of Ireland is directed by the United Kingdom and Ireland Territory, with resources provided through trusts administered by The Salvation Army Trustee Company. The two principal trusts of this territory are The Salvation Army Trust and The Salvation Army Social Work Trust. The work and results of The Salvation Army in the United Kingdom and the Republic of Ireland are excluded from this annual report.

Reliance Bank Limited

The banking company, Reliance Bank Limited (‘the Bank’), is a wholly owned subsidiary of the Trust. In 2018, the Trust purchased The Salvation Army Trust’s (UK Territory) 49% interest in the Bank and invested an additional £1.5 million in the Bank’s share capital. Under its new ownership and through the delivery of its five-year strategic plan, the Bank aimed to become an important, positive social impact bank. Between December 2019 and November 2025, £16 million of additional share capital was invested by the Trust in the Bank to support its new strategic plan and future growth. The Bank experienced a loss-making period for the four years to 31 March 2022, against the background of the global pandemic, ultra-low interest rates and the Bank’s investments in people, systems and resources. The Bank returned to profit in 2022/23 and recorded a record profit before tax of £1.9 million in 2023/24, and this positive outlook continued in 2024/25 when a profit before tax of £1.4 million was achieved, notwithstanding workforce expansion and investment in systems upgrades.

Historically, the Bank’s business model was to invest the funds it received from customers, with treasury counterparties, and the margin received more than covered the fixed costs of running the Bank. As interest rates fell after 2008, this model became unsustainable and since 2018 the Bank has instead built a social impact lending portfolio, not only to improve financial

10 35TH ANNUAL REPORT AND ACCOUNTS

returns, but also to align to the mission of supporting communities and meeting human need. Growth in the loan book, together with rising interest rates, has driven improved income levels and the return to profitability. Earnings are expected to stabilise as these investments take effect and interest rates moderate.

The Bank offers transactional banking services to more than 30 Salvation Army territories, providing a vital ‘safe haven’ for project funds and IHQ operational grants and a secure platform for international fund transfers for the global Salvation Army. The Bank offers these territories a comprehensive product range, including current accounts and fixed interest products in GBP, USD and EUR, as a UK-domiciled bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Additionally, the Bank meets the functional banking requirements of IHQ (as distinct from the territories), processing payments to a wide range of international locations, providing personal banking services for non-UK nationals working at IHQ, creating bespoke banking arrangements for territories to match specific IHQ requirements and obtaining bank ratings information to inform IHQ evaluation of proposed bankers for territories. The Bank also provides a wide range of banking services to The Salvation Army (UK and Ireland Territory) and offers employees of Salvation Army organisations fee-free personal current account services at market rates.

Reliance Bank more widely provides banking services and lending secured on property to other UK charities and positive social impact organisations, as well as savings and other deposit accounts to small- and medium-sized enterprises and the public.

In 2018, SAITCo, as ordinary Trustee of the Trust, undertook considerable due diligence before acquiring sole ownership of the Bank, with the Board of Directors receiving multiple reports from appointed consultants on legal, tax, accounting, governance, risk and regulatory considerations, including a detailed critical analysis of the Bank’s five-year strategic plan and consideration of alternative options to proceeding with sole ownership. The Trust refreshed this diligence in 2021/22 and 2022/23, to support investment of additional share capital, with the engagement of external consultants to review the Bank’s

performance to the five-year strategic plan and advise SAITCo on other related matters. During 2024/25, SAITCo introduced a Reliance Bank Shareholder Committee to further enhance contact and information flows between the Bank and SAITCo, and the Bank has actively engaged with this new body.

Ordinarily, it is expected that the Bank will donate a proportion of its net taxable profits to support the mission of the Trust. No donations were made during the early years of sole ownership of the Bank by the Trust, as the Bank was in an investment phase. However, in 2023/24 the Bank made a Gift Aid payment of £100,000 to the Trust and a further £100,000 was paid in 2024/25, with £400,000 paid in July 2025 following the 2024/25 year-end.

While the Trust is the Bank’s parent controlling entity, a Nominations Committee – comprising Non-Executive Directors of the Bank – recommends the appointment of Directors to its board. This includes consideration of proposed shareholderrepresentative Directors.

The Bank, in common with all banks, faces several inherent risks, such as credit risk, interest-rate risk, risk arising from holding foreign currencies, climatechange risk, compliance risk, conduct risk and operational risk. Policies are in place to ensure that the Bank’s exposure to these risks is monitored and controlled. The Bank maintains a risk register which is regularly reviewed by its Board Conduct, Risk and Compliance Committee and Executive Committee.

The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited

The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited is a wholly owned subsidiary of the Trust.

During 2020/21, a restructuring was progressed for SALT College, a training facility in Nairobi, Kenya for Salvation Army territories in Africa that hitherto operated as an integral part of the Trust. This was registered in Kenya as a separate legal entity controlled by SAITCo, as ordinary Trustee of the Trust and on behalf of the Trust, to which the Trust transferred assets, and so, from 1 August 2020 and during the year under review (2024/25), is no longer reported within the charity-only accounts of the Trust but within the Group accounts. The assets

35TH ANNUAL REPORT AND ACCOUNTS 11

transferred from the Trust to the separate legal entity in 2020 in the sum of £26,309 are not material to the Trust.

Consolidated accounts for the Trust incorporating the subsidiary companies Reliance Bank Limited and The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited are presented for 2024/25 on pages 62 to 89, as well as charity results, assets and liabilities for the Trust.

GOVERNANCE

The Trust utilises a committee structure to supervise its operations. SAITCo’s Board of Directors, including five Independent Non-Executive Directors, delegates day-to-day financial management decisions to the International Finance Board (‘IFB’), International Business Board and International Projects Board within clearly defined parameters. The terms of reference for subsidiary boards and the minutes of all meetings of these boards are reviewed by the Directors on a regular basis with the latest review of terms of reference undertaken in May 2025.

SAITCo has a Serious Incident Reporting Policy and Procedure in place, last reviewed in August 2025, outlining the process to be followed to decide if an incident relating to the Trust would be appropriate to be reported to the Charity Commission as a serious incident in accordance with the latest regulatory guidance.

A well-established Internal Audit Department also carries out a cycle of reviews of the systems in operation within IHQ and in all countries where The Salvation Army is working, and a framework of internal controls and local financial management systems are in place, supported by a manual of International Financial and Accounting Standards (‘IFAS’) for The Salvation Army issued from IHQ. Salvation Army territories also share findings of locally instructed external audits of territorial operations with IHQ for review and consideration within the internal audit process. The IFAS manual was reviewed and updated during 2022/23, following a comprehensive committee-led drafting process, including formal review of consultation materials by 50 Salvation Army territories, with a

revised 2023 edition of IFAS issued from IHQ in February 2023 and effective from January 2024. A project is also well advanced to roll out cloud-based accounting software to all financially supported territories by 2025/26, enabling more regular and more detailed reporting both within territories and from territories to IHQ, with more than 30 financially supported territories using the software as at November 2025. A new reporting mechanism from all territories to the IFB commenced in 2020/21 and this was further developed in 2022/23, based upon the suite of 16 Key Financial Indicators (‘KFIs’) defined within the IFAS manual, allowing IHQ to be better informed of the financial position in territories as a significant enhancement to internal controls.

12 35TH ANNUAL REPORT AND ACCOUNTS

and effectiveness, as well as benchmarking to good governance practice as outlined within the Charity Governance Code.

A Board Charter for SAITCo was developed during 2019/20 as an early action within the governance review process and remains in place. The Charter defines the roles, responsibilities and authorities of SAITCo in the effective and efficient functioning of the Trust, and considers mission objectives, board roles, board procedures, board composition, board committees, board induction and ongoing training, conflicts of interest and board evaluation.

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During 2020/21, the Articles of Association of SAITCo were revised and the SAITCo Board Charter further reviewed and updated to embed reforms prompted by the governance review. An operational review of IHQ was then undertaken with a number of enhancements implemented in[i] -| 2fal =F. 2021/22 and 2022/23, including changes to the ' e r =, ; operation of subsidiary boards, committees and councils, update of expenditure authority thresholds for financial decision-making and internal staffing | te | reorganisations.

nal Headquarters, London, UK, with St Paul’s Cathedral in the background

An Audit Committee also meets on a quarterly basis and comprises four members, including three Independent Non-Executive Directors of SAITCo, with none of the members holding executive responsibility for management of the Trust. The Committee holds delegated responsibility on behalf of SAITCo for continual review of the financial management and internal controls of the Trust, and holds a direct line of communication to the internal and external auditor.

SAITCo has undertaken a wide-ranging and significant governance review in recent years, assisted by an external consultant and involving a review of SAITCo membership, structure, interrelationships with other IHQ bodies, performance

During 2023/24, an external consultant was engaged by SAITCo to benchmark IHQ practice to the Charity Governance Code and explore opportunities for further development. An action plan was developed to further align SAITCo practice to the Code and was approved by SAITCo for implementation from May 2024 with progress to the action plan reviewed by SAITCo in July 2025. SAITCo already embraces many governance activities outlined within the Code, such as conducting board induction and training, board performance monitoring, managing potential or actual conflicts of interest, and regularly reviewing terms of reference for subsidiary boards with development work ongoing in areas such as board consultation with beneficiaries and board review of longer-term financial strategy.

Additional work was also undertaken during 2024/25 to apply updated risk management protocols following approval of a revised and refreshed SAITCo Risk Register by SAITCo for implementation from January 2024. Work also commenced during 2024/25 on a further review of the SAITCo Articles of Association and SAITCo Board

35TH ANNUAL REPORT AND ACCOUNTS 13

Charter, with revised documents to be finalised during 2025/26. Further anticipated activities during 2025/26 include a wide-ranging review of SAITCo board performance, led by an external consultant and featuring benchmarking to the new 2025 edition of the Charity Governance Code, a review of SAIT Investment Policy and enhancements to board strategic planning processes, with the commencement of a new strategic planning exercise for IHQ and the Trust to take effect from 2026/27.

SAITCo has in place a number of dedicated governance arrangements in respect of its role as sole owner of Reliance Bank Limited, having taken advice on this from an external consultant as part of the body of due diligence work undertaken towards acquiring sole ownership of the Bank. An additional Director with banking expertise was successfully recruited to the SAITCo Board in May 2019 and remains in post with two shareholder representatives appointed to the Bank board and mechanisms in place for performance reporting for the Bank to SAITCo and risk management for the Bank to the Risk Management Committee of the Trust. During 2024/25, SAITCo refreshed and enhanced its governance arrangements with the creation of a new subsidiary committee of SAITCo, the Reliance Bank Shareholder Committee, which is chaired by the ‘banking expert’ SAITCo Independent Non-Executive Director. This Committee provides a primary point of contact and forum for engagement between SAITCo and the Bank, receiving regular updates on financial performance, governance, risk, audit, regulatory and other relevant matters relating to the Bank, and ensuring pertinent items are highlighted to SAITCo.

REMUNERATION

SAITCo is committed to ensuring a proper balance between paying staff to attract and retain the best people for the job, and careful management of charitable funds.

SAITCo is committed to paying the living wage as set by the Living Wage Foundation to all staff as a minimum and IHQ is accredited by the Living Wage Foundation as a living wage employer.

There are two grading structures currently used at IHQ – an IT specialist scale and a main pay scale for all other employees. The differentiation is to address the market salary demands of IT specialists in the third sector. Within the main pay scale, posts are graded between seven evenly distributed grades, each of which contain nine main spine points (three per cent apart) and two upper spine points (six per cent apart). The scales were formulated, and are subject to ongoing review, with assistance from an external consultant to undertake market comparisons and objective benchmarking to comparable roles in other organisations. The lowest full-time salary at IHQ is always set in line with or above the living wage as set by the Living Wage Foundation.

New staff are usually appointed at the lower spine points of the grades, though this can differ for some specialist posts or due to candidate experience. Postholders may progress through the pay grade via a pay progression business case. The business case should identify evidence of excellent contribution/ performance and external benchmarking, and will be thoroughly reviewed by IHQ HR and Finance professionals before being presented to the Employee Review Board. Cost-of-living increases are also awarded periodically to all staff by SAITCo, with an assessment made within the annual budget setting process to determine any proposed inflationary adjustment with reference to the Consumer Price Index and the financial position of the Trust.

Further remuneration disclosures for the Trust and Group for this reporting period are shown within Note 14 to the Accounts. The Trust did not have any UK volunteers, excluding trustees, during the reporting period.

MODERN SLAVERY ACT

Management remuneration policies and practices within the Trust are reviewed periodically by SAITCo, with day-to-day decisions delegated to the Employee Review Board within clearly defined parameters. The IHQ Remuneration Policy was last reviewed and updated by SAITCo in July 2025.

The Salvation Army is very active in bringing practical assistance to those whose lives have been affected by the evil of modern slavery, and as such is sensitive to the danger of inadvertently finding itself falling short of its own beliefs and standards in this regard, as well as the standards set out in the

14 35TH ANNUAL REPORT AND ACCOUNTS

UK Government’s Modern Slavery Act 2015. The Modern Slavery Act 2015 compliance statement for SAITCo, reviewed and updated in December 2024, can be accessed at http://www.salvationarmy.org/ ihq/modernslaveryact2015 and provides details of the variety of measures undertaken by SAITCo to avoid and reduce the risk of inadvertently supporting modern slavery in any way.

been subscribed to by the Trust, or by anyone acting on its behalf, that no complaints in relation to fundraising activities have been received and that any solicitations are managed internally, without involvement of commercial participators or professional fundraisers.

ENVIRONMENTAL PERFORMANCE

FUNDRAISING

Section 162a of the Charities Act 2011, as amended by the Charities Act 2022, requires charities to make a statement regarding fundraising activities. Although the Trust does not actively undertake widespread fundraising from the general public, the legislation defines fundraising as ‘soliciting or otherwise procuring money or other property for charitable purposes’. Such amounts receivable are presented in the Accounts as ‘Other Donations and Legacies’.

In relation to the above, SAITCo confirms that no fundraising activity has been taken by the Trust, or by anyone acting on its behalf, that no fundraising standards or scheme for fundraising regulation have

SAITCo is committed to continuously improving the environmental sustainability of the work of the Trust, seeking to be responsible stewards of God’s creation and to mitigate where possible the environmental harm arising from operations of the Trust.

The Trust, as a charity with SAITCo as corporate trustee, is not within the scope of the Streamline Energy and Carbon Reporting (‘SECR’) requirements outlined within The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, but has compiled the below environmental reporting as a voluntary disclosure seeking to mirror where possible SECR requirements:

2024/25 2023/24
Core reporting:
Scope 1 emissions from the combustion of gas tCO2e 254 316
Scope 1 emissions from the combustion of fuel for transport purposes tCO2e 20 18
Scope 1 total tCO2e 274 334
Scope 2 emissions from purchased electricity (location-based) tCO2e 317 359
Scope 3 emissions from business travel in rental cars or employee- tCO2e 8 10
owned vehicles
Total carbon based on the above emissions tCO2e 599 703
Energy consumption used to calculate emissions kWh 3,034,001 3,576,470
Intensity ratio: tCO2e per 1,000 square metres of properties in scope tCO2e 62 72
Additional reporting:
Scope 1 emissions from other activities (fugitive emissions) tCO2e 0 83
Scope 3 emissions from business travel in vehicles not owned or tCO2e 3,641 3,463
controlled by the Trust (air travel)
Grand total carbon of all reported emissions tCO2e 4,240 4,248

35TH ANNUAL REPORT AND ACCOUNTS 15

Further details on the methodology followed for this reporting are shown in the footnote below.1 Due to the international focus of the work of IHQ, air travel has a material impact and so related emissions have also been included as additional reporting.

The Trust is actively working to enhance environmental performance, and during 2024/25 carried out the following energy efficiency actions:

‘The activities of the charity are rendered without

discrimination and for the benefit of all people in need’

1The reporting shown is for the UK-based operations of The Salvation Army International Trust and follows the financial year of 1 April to 31 March. It includes data drawn from the best available sources: for example, gas and electric are based on kWh consumed (nearly all actual readings with only a small amount of estimation); fleet vehicles are based on actual litres of fuel drawn; air travel is based actual ‘passenger kilometres’ according to the class of ticket and flight-haul type, but with some activity

OBJECTIVES AND ACTIVITIES

PUBLIC BENEFIT

The Trust is operating for the public benefit and in keeping with the organisation’s mission statement. In setting and reviewing the Trust’s aims and objectives, and planning future activities, the Trustee pays due regard to the guidance issued by the Charity Commission on public benefit. The main activities of the Trust are:

A breakdown of expenditure per these main charitable activities of the Trust is presented at Note 10 in the Accounts. This shows a significant outlay on funding assistance to Salvation Army territories (under the second activity listed above), recognising that such grants also aid fulfilment of the other stated objectives as Salvation Army territories provide a wide range of local church/social programmes, having received the IHQ funding necessary to maintain day-to-day operations.

Specific aims for each of the main activities of the Trust during the reporting period are outlined in the sections that follow. The activities of the charity are rendered without discrimination and for the benefit of all people in need.

not included due to challenges in appraising the underlying level of activity and so emissions. UK Government carbon emission factors are used for the relevant year, and for air travel the factors used include ‘radiative forcing’. Electricity emissions are reported using location-based factors only. The choice of intensity ratio is emissions per square metre of building space as the most appropriate metric related to the associated emissions.

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World Mission
Assistance to Salvation Army Territories
International Personnel Training
and Development
Crisis Relief
Health Services for the Poorest People
Fighting Against Sexual Traffcking
and for Social Justice		 18
24
31
34
38
41

35TH ANNUAL REPORT AND ACCOUNTS

17

WORLD 1 MISSION

OVERALL OBJECTIVE : To continue the advancement of the Christian religion through evangelistic outreach.

SPECIFIC AIMS

World mission objectives are to encourage and empower people linked to The Salvation Army to reach out into their communities with spiritual and practical support, to offer online and other resources to Salvationists and friends around the world – and so create a supportive network through which people can share in prayer and spiritual nurture. International Headquarters will prioritise visits of the General and the Chief of the Staff to Salvationists and friends around the world, providing opportunities for encouragement and challenge, and generating increased awareness of The Salvation Army’s mission in the world.

Salvation Army aims to re-establish its ‘true north’ in every place, with territories worldwide being encouraged to set their plans and future-proofing efforts within the three priority areas. Critically, 12 workstreams across the three priorities of Compass were appointed to produce guiding information for territories based on the results of surveys undertaken and analysis of best-practice methodology for growth across all areas of The Salvation Army’s life and mission. This includes spiritual life development, leadership development, mission impact, global and local financial sustainability, and engagement with emerging generations.

INTERNATIONAL LEADERS

ACHIEVEMENTS

The year in review marked the first visit of a Salvation Army General to Poland, the opening of the first Salvation Army corps (church) in Thailand, the inaugural visit of General Lyndon Buckingham and Commissioner Bronwyn Buckingham (World President of Women’s Ministries) to the United Nations, where they met with several high-ranking UN officials and their staff, and the issuing of the General’s call to peace in Ukraine.

After a year of deliberations and extensive stakeholder consultation, in September 2024 the General launched The Salvation Army’s new global strategic framework titled ‘Compass: Empowering People | Enhancing Mission Impact | Establishing an Enduring Legacy’. Through Compass, The

During 2024/25, General Lyndon and Commissioner Bronwyn Buckingham visited many Salvation Army territories around the world, including: Singapore, Malaysia, Myanmar and Thailand; Indonesia; USA Western; Australia; Germany, Lithuania and Poland; and Sri Lanka. The General and Commissioner Buckingham also met with the USA National Advisory Board and with senior officials at the United Nations in New York.

Chief of the Staff Commissioner Edward Hill and Commissioner Shelley Hill (World Secretary for Women’s Ministries) also engaged in territorial visits, including: Korea; Bangladesh, Kenya West and USA Eastern for the commissioning of Salvation Army officers; and the Democratic Republic of Congo, where they were special guests for the territory’s 90th anniversary celebrations.

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The General and Commissioner Buckingham open Chiang Mai Central Corps – the frst corps in Thailand

The General launches Compass, the new global strategic framework for The Salvation Army

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Chief of the Staff Commissioner Edward Hill and Commissioner Shelley Hill (World Secretary for Women’s Ministries) with offcer cadets from the Defenders of Justice Session, Bangladesh

Throughout the year, the General, along with senior Salvation Army leaders worldwide, has been engaged in developing Compass as The Salvation Army’s new global strategic framework. At the March 2025 meeting of the General’s Consultative Council (‘GCC’), leaders of the 12 Compass workstreams presented 78 recommendations to be considered for implementation to achieve the three overarching goals of Compass.

In his closing address at the GCC, General Buckingham delivered a powerful challenge to the Army’s leaders across the world: ‘We have 78 recommendations,’ he said. ‘Some might be overwhelmed by that, others energised by it. This is the result, though, of deep thinking, of analysis, of prayer, of a sense of divine urgency.

‘We need to be truthful about who we are with regard to the opportunities and the challenges we face. Let our legacy be that we didn’t skip over these realities but that we dived into it and did our best to address our situation and help us to be more

effective and more efficient in fulfilling the missional mandate that has been given to us by God.

‘We want the legacy we leave behind, across the world, to be a growing Army. Not a surviving Army. Not a limping-along Army. Not a broken Army. But a growing Army. We won’t be satisfied if we can’t say that we are making decisions and positioning ourselves so that we can celebrate around the world, “We are a growing Army!” Growing not just numerically, but, yes, numerically!’

COMMUNICATIONS

In today’s interconnected world, communications is a vital component of any organisation and shapes how people connect, learn, build relationships and conduct business. In the context of The Salvation Army, the International Communications team based at IHQ is committed to ensuring global engagement with the spiritual life and mission of The Salvation Army, internally and externally, by telling the story of

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The Salvation Army’s mission across communications platforms including web, social media and traditional publishing.

In 2024, IHQ took the bold step of creating one team of communications professionals from two previously separate teams – literary/editorial and digital communications. The new Communications team works together to produce high-quality print and online communications across the following channels: magazines and books, web articles and social media posts, film production and YouTube posts, and internal communications across all channels, including web-based collaborative platforms such as Microsoft SharePoint.

Significant stories shared globally during the year in review included comprehensive coverage of the visits of The Salvation Army’s international leaders to territories in different parts of the world. Other news features focused on the work of The Salvation Army’s emergency services in communities on all continents devastated by flooding and other natural disasters; the Army’s participation in the Global Christian Forum in Ghana, the 22nd World Methodist Conference in Sweden and the Lausanne 4 Congress in South Korea; a three-day online symposium on climate change hosted by The Salvation Army’s International Development Services; the movement’s transformative work with thousands of people in the context of war in Ukraine, and much more.

The Communications team also established Brand Guidelines for all IHQ departments and sections, and published a booklet titled A Quick Guide to Documentary Photography for IHQ and global use. The team also renewed its mandate to work collaboratively with Salvation Army Communications teams worldwide.

BOOKS, MAGAZINES AND GRAPHIC DESIGN

Salvation Books, the publishing imprint of The Salvation Army’s International Headquarters, continued its work during 2024/25 aiming to ensure Salvationists are equipped with and have access to publications and resources that deepen their faith, strengthen their prayer life, and offer encouragement and inspiration.

Fulfilling that desire, in addition to the annual Salvation Army Year Book and the regular three editions of the daily devotional title Words of Life , books published in both print and e-book formats in the year under review were:

Additionally, the work of the editorial and graphic design team included four editions of The Officer magazine and resourcing projects across the different sections of IHQ.

FILM PRODUCTION AND EXHIBITIONS

The Film Production Unit supports the work of IHQ by creating visually arresting films that capture the story of the spiritual and missional focus of The Salvation Army – sometimes in a single country, but often with a global outlook. The unit facilitates effective and efficient communication of complex internal updates to leadership at all levels throughout the movement.

Highlights of film production completed in the period under review include sharing the inspiring story of how safe water wells and filtration units have dramatically reduced cases of chronic kidney disease in Sri Lanka, how a new book written by Salvation Army officer Major Phil Layton can help Christians better understand and discuss their faith, and creating a range of film communications to share the General’s global strategic framework known as Compass.

‘Conversations with the General’ was a much-viewed, four-part discussion on topics surrounding how Compass will shape The Salvation Army during the tenure of General Buckingham. All of this work, and more, was undertaken alongside the unit’s ongoing mandate to support the General, as he shares

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‘Throughout the year, International Headquarters... continued to portray its worldwide mission through high-impact exhibitions at its Gallery 101...’

spiritual and missional messages with Salvationists around the world, and to inspire all who wish to keep up to date with the transformative work being done by The Salvation Army.

Throughout the year, International Headquarters also continued to portray its worldwide mission through high-impact exhibitions at its Gallery 101 on the lower ground floor of IHQ. Many people came to view the exhibitions and stay for lunch

or a coffee at Café 101. Exhibitions included ‘The Fight Against Poverty and Injustice’, ‘Education for the Most Vulnerable’, ‘Fresh Expressions in Europe’, ‘Celebrating Stories of Hope’, ‘What Would It Take to Change the World?’, ‘Simple Beginnings, Transforming Lives, Impacting Futures’, ‘Love Changes Lives’, ‘Disaster Response in Southern USA’, ‘Three Years of War: Healing the Mental Health Scars’ (Ukraine) and ‘Women Who Hope’.

‘Women Who Hope’ exhibition at International Headquarters, London, UK

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TRANSLATIONS

Accurate translation is essential to ensure The Salvation Army can communicate its mission clearly and concisely to a global, linguistically and culturally diverse audience.

It is also important that resources – whether online or printed – are accessible to all people. The official IHQ languages are: English, French, Hindi, Portuguese, Spanish, Swahili and Tamil. The translation of materials into other languages is also coordinated by the IHQ translations desk. One of the main achievements during 2024/25 was the translation of Compass material. Other translation projects included:

SPIRITUAL LIFE DEVELOPMENT

The Spiritual Life Development team at IHQ seeks to encourage and equip Salvationists to live well as Christians in their everyday – to grow in personal relationship with Jesus, to become more like him and to do the things he did. The team seeks to bring together writers and contributors from around the world to create resources and tools that cross cultural boundaries to enhance the spiritual depth and commitment to holiness among Salvationists.

This year, resources explored aspects of discipleship to Jesus, including a biblical exploration of hospitality, cultivating a heart of gratitude and a guide to praying for situations of conflict. Recognising that there are many ways to engage in spiritual life development, improving the accessibility of written material continues to be a priority, with resources still needing to be made available in more languages and in alternative audio and visual formats.

In 2024, IHQ established a content partnership with YouVersion to make Bible-based reading plans created within The Salvation Army available on the Bible app. The Bible app has an international audience and is used by many Salvationists as a personal discipleship tool, particularly among younger generations. This partnership allows IHQ to bring study and devotional material created within our movement to a new audience within The Salvation Army and beyond.

KEY STATISTICS

FUTURE PLANS

The General and other international leaders will continue to travel around the world engaging with Salvationists, friends, supporters and people of influence, offering encouragement and challenge. The General, the Chief of the Staff and other Salvation Army leaders will continue to propel the roll-out of Compass, The Salvation Army’s global strategic framework, during 2025/26 and beyond. IHQ will continue to resource Salvationists around the world through the development of books and magazines, films and video content, and spiritual life development resources, with translation of resources to make content available and accessible to as many people as possible.

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ASSISTANCE TO SALVATION ARMY 2 TERRITORIES

OVERALL OBJECTIVE : To continue to provide financial assistance to The Salvation Army where needed.

SPECIFIC AIMS

The Trust seeks to provide financial assistance, infrastructure and technical support to territories through a wide range of programmes, including grant funding and delivery of large-scale international projects with a particular focus upon four areas of work during 2024/25:

A. INTERNATIONAL DEVELOPMENT SERVICES

The International Development Services (‘IDS’) team, based at IHQ, partners with Salvation Army territories to address poverty, alleviate suffering, challenge injustice and grow corps (church) ministries through a number of different projects and initiatives. IDS supports the global mission of The Salvation Army by coordinating and supporting the delivery of sustainable projects in territories for a wide range of activities, with individual projects funded by the Trust, other Salvation Army territories or external donors. The overall portfolio of projects includes community development projects (empowering local communities through sustainable development initiatives), modern slavery and anti-human trafficking work, health-care services, social-work services, education facilities and schools, elderly care homes, children’s programmes (offering care and protection for vulnerable children through residential homes and programmes) and missionsupport projects (enhancing the reach and impact of The Salvation Army’s global mission). Through these efforts, the global Army seeks to make a profound difference, transforming lives and communities with compassion and dedication. Specific aims for IDS for the year were to grow and support water and

sanitation projects and economic empowerment projects in target territories and to build capacity of territories to effectively deliver projects especially across Africa.

B. INTERNATIONAL PROPERTY PROJECT

The international property project, overseen by a staff member based at IHQ, aims to assist territories in highest and best use reviews of underutilised property assets as a step towards financial independence. In 2024/25, the project aimed to progress several property projects in Africa and South Asia, seeking to develop commercial projects and explore new opportunities, working with existing property consultants and building relationships with new local partners, to develop schemes through a number of recognised stages.

C. INTERNATIONAL FINANCIAL AND ACCOUNTING STANDARDS

This multifaceted project involves a global team, led from IHQ, implementing cloud-based NetSuite accounting software to all financially supported territories alongside the roll-out of new International Financial and Accounting Standards (‘IFAS’) for the global Army. The software deployment replaces basic stand-alone systems, assists territories in complying with IFAS reporting and enables the implementation of computerised internal financial controls to replace time-consuming manual processes. Key objectives for the year were to continue the roll-out of the software to a further group of territories, deploy enhanced solutions for budgeting/reporting and to continue to enrol new students onto a suite of e-learning courses, while

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enhancing course content to strengthen global financial capacity and compliance.

D. OFFICE 365 PROJECT

The Office 365 Project involves a project team at IHQ and within territories working to upgrade network infrastructure and internet connectivity in all financially supported territories, as well as providing devices to targeted users in territories and advancing the use of Office 365 tools in day-today operational processes, including moving locally stored data into the cloud to improve security and resilience. A particular objective for the project in 2024/25 was to enhance digital infrastructure and connectivity in target territories, providing territorial staff with the necessary tools, training and support to enable full utilisation of Office 365 to enhance data security, reduce data loss, streamline IT support and provide greater IT governance.

Building community resilience: rainwater harvesting provision in Lohove, Kenya, which serves around 200 local families

ACHIEVEMENTS

A. INTERNATIONAL DEVELOPMENT SERVICES This year, the IDS team continued to work with territorial development offices across the world to coordinate a range of programmes to promote a holistic approach to meet the physical, emotional, social and spiritual needs of people served.

Climate change continues to affect the most vulnerable communities, and multiple projects were advanced during the year to address this through multi-sector approaches to resilience, including agricultural training, safe water and creating natural barriers to climate change. In a remarkable display of global unity, IHQ hosted a three-day online symposium on climate change adaptation and resilience, drawing over 300 participants from 50 countries. The global Army continues to make a profound impact, and water and sanitation projects during the year reached 188,686 people, providing them with essential resources for a brighter and healthier future, and a further 54,164 individuals gained strength and benefited from environmental resilience projects.

35TH ANNUAL REPORT AND ACCOUNTS 25

Economic empowerment is another key area in which The Salvation Army brings hope with programmes supporting communities, families and individuals around the world to gain independence through the acquisition of skills that lead to employment opportunities. Projects are broad – from a traditional weaving handicraft project in China to multiple Village Savings and Loans Scheme groups, particularly across Africa. A total of 26,053 women engaged in economic empowerment opportunities throughout the year, with 2,961 Village Savings and Loans Scheme groups active at the year-end.

The IDS team also oversaw the Mission Support Scheme during the year, which is dedicated to

enhancing the capacity and facilities of local corps (churches) across financially supported territories. This included a project in Kenya West Territory, where 38 corps were equipped with rainwater harvesting facilities that included a water tank system, benefiting the local corps and the surrounding communities. Projects like this help to build relationships with local residents, foster stronger community ties and improve quality of life.

Capacity development was also a cornerstone of work during 2024/25. In addition to supporting territories and development officers, IDS established a comprehensive programme aimed at enhancing the capabilities of Salvation Army staff in delivering projects and programmes to the most vulnerable populations across Asia and Africa, enabling staff towards continuous improvement and collaboration in the ongoing mission to serve and uplift those in need.

The work of IDS is not without challenges, and escalating conflicts and rising political tensions during the year made it harder to reach those most at risk in some countries – individuals and communities who are at the very heart of The Salvation Army’s mission – with risk assessments updated regularly and logistical solutions identified where possible. Despite such obstacles, the commitment of IDS and territorial project teams is clear: to stand with the vulnerable, serve with compassion and bring hope where it is needed most.

Using a learned skill to generate income for the family: handicraft project in Longchuan, China

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B. INTERNATIONAL PROPERTY PROJECT

Overseen by a full-time consultant based at IHQ, the International Property Project works with globally recognised property firms to develop potential schemes for territories through the stages of scoping and identification, feasibility approval, detailed feasibility and implementation. Work continued during the year with territories to further the progression of existing projects and explore potential new opportunities, illustrated by the following examples:

DEMOCRATIC REPUBLIC OF CONGO: Following completion of a large-scale project, using capital released from the sale of underutilised land to fund construction of income-generating assets in the form of commercial office space, villas and apartments, the IHQ team continued to work with the territory to identify long-term tenants for the newly constructed buildings. The first year of rental operations was successfully completed in 2024/25, with considerable rental income generated for the territory to support local ministries.

KENYA EAST: Following the sale of 200 acres of underutilised land, the International Property Project team supported the territory to commence a large-scale project using the sales proceeds to develop residential units on another site for income generation purposes. Work on the new property development commenced in 2024/25 and is expected to be completed in 2025/26, with the IHQ team also supporting the territory to identify tenants for the new buildings.

In addition to these schemes, the International Property Project team supported feasibility studies and other programmes across multiple territories, including India Western, India Central, India South Western, and Zimbabwe and Botswana, and also provided due diligence for the ongoing review of health services in several territories. Work was also completed during the year to migrate the international property database managed from IHQ to a cloud-based system, enabling enhanced property portfolio management by territorial staff.

C. INTERNATIONAL FINANCIAL AND ACCOUNTING STANDARDS

The IFAS Project involves a global project team led from IHQ implementing cloud-based accounting software (NetSuite) for all financially supported territories alongside the roll-out of new International Financial and Accounting Standards (‘IFAS’) for the global Army. The IFAS Project team has tailored the design and testing of the accounting software to meet Salvation Army requirements, adding inter-unit/consolidation tools, a Point-ofSale (‘POS’) solution for territories with trading operations, and budgeting/reporting tools allowing automatic generation of the Key Financial Indicators (‘KFIs’) required for IFAS reporting. The scale of this international project, covering all financially supported territories, is significant and unprecedented within the global Salvation Army.

The IFAS Project continued to take significant strides forward in 2024/25, and by the year-end had successfully deployed the NetSuite accounting system into 29 operational units, comprising 27

Under construction: new residential units in Nairobi, Kenya

35TH ANNUAL REPORT AND ACCOUNTS 27

NetSuite Go-Live events in Zimbabwe and Botswana Territory

territories, the India National Office and IHQ. This marks a major milestone on the project journey towards financial modernisation, enhancing transparency, reinforcing regulatory compliance, and providing cloud-based tools that are scalable and mission-focused. Go-Lives completed during the year included The Philippines Territory, Zimbabwe and Botswana Territory, Ghana Territory, and Liberia, Sierra Leone and Guinea Territory.

Pre-implementation visits to eight territories were also undertaken during 2024/25, enabling tailored requirement-gathering ahead of planned NetSuite implementations in 2025/26. The final Territorial IFAS Champions Conference was also held in Rwanda in July 2024, hosting 30 delegates from eight remaining territories still to receive NetSuite. The conference provided comprehensive training on NetSuite, IFAS policies, budgeting preparation and processes, reporting frameworks and related systems. Delegates were equipped with the knowledge and skills necessary to support forthcoming NetSuite implementations and strengthen financial governance within their territories.

Launched in July 2022, the Learning Management System (‘LMS’) continued to serve as a cornerstone for delivering high-quality, structured e-learning within the IFAS programme during 2024/25. The LMS offers a comprehensive suite of online training

on IFAS financial policies, NetSuite functionalities, general accounting principles and leadership development. The platform supports ongoing capacity-building for finance teams, officers and administrative staff across all participating territories. At the year-end, more than 1,100 users had enrolled on LMS across 12 courses with the system delivering more than 4,500 training hours, demonstrating strong engagement and a growing commitment to professional development throughout the organisation.

D. OFFICE 365 PROJECT

The Office 365 Project (‘O365’) involves a project team at IHQ and within territories working to upgrade network infrastructure and internet connectivity in all financially supported territories, as well as providing devices to targeted users in financially supported territories and advancing the use of Office 365 tools in day-to-day operational processes, including moving locally stored data into the cloud to improve security and resilience.

During the year, the project successfully completed a roll-out of laptops to financially supported territories and implemented a new LMS, which will enable better access to remote technical training for the Office 365 suite and also essential training for territorial staff on topics such as security, data protection, and health and safety.

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The team also advanced a global network upgrade project, providing IHQ with a holistic view of THQ networks to ensure consistent security configuration and target improvements to the territories with the greatest need. Assistance was also given to several territories to implement satellite internet connectivity, which not only saw an improvement in connectivity but also a significant reduction in costs.

Site visits were also completed to a sample of territories which informed a new approach to the wider adoption of the O365 platform, integration with current operational processes and the challenges faced by some territories. These visits led to the formulation of a new plan to create ‘Centres of Excellence’, where the O365 team will initially partner with selected territories to showcase how technology can be used to provide safe, secure, efficient communication and collaboration to support the mission of The Salvation Army across the world.

KEY STATISTICS

Improved bandwidth: installation of satellite internet connectivity in Malawi

FUTURE PLANS

A. INTERNATIONAL DEVELOPMENT SERVICES As the cost of living rises, fundraising is becoming increasingly challenging and securing funds for social-work institutions, health-care facilities and educational establishments, many of which serve the most vulnerable, is becoming more diffcult. During the next year, in addition to continuing project resourcing and monitoring, IDS will particularly seek to assist territories in the reassessment of services and programmes in children’s homes, hospitals and schools, striving to enhance their effectiveness and effciency in serving those in need. For children’s homes and hostels in territories, this ‘journey of change’ will involve a formal process to assess and upgrade facilities, and to enhance the service offered to the children placed in Army care in line with locally consistent modern-day social-work practice, as well as exploring ‘alternatives to care’ options in line with best practice for vulnerable children.

35TH ANNUAL REPORT AND ACCOUNTS 29

‘The International Property Project team will continue to support capital projects in territories and provide due diligence on propertyrelated proposals globally’

B. INTERNATIONAL PROPERTY PROJECT

The International Property Project team will continue to support capital projects in territories and provide due diligence on property-related proposals globally, with work projects including partnering with Indian territories to explore release or greater utilisation of property assets and undertaking business-planning reviews for hospitals and other institutions in multiple territories to work towards long-term fnancial sustainability. Ongoing construction work will continue in Kenya East, with feasibility work expected for Ghana, Uganda, India Western and India South Western. A number of seminars are also planned to assist territories with property assessments and business planning.

risks remain active, including data backlogs, tax integration and required compliance activities with the team to continue to work to mitigate these through training and leadership engagement.

D. OFFICE 365 PROJECT

Over the next year, the Offce 365 Project aims to complete the creation of centres of excellence in selected territories around the Army world before progressing a full roll-out by 2030 to ensure all fnancially supported territories are using O365 at THQ, divisions, corps and institutions. The project will continue to focus on upskilling local IT staff and look to enhance data storage solutions and security in territories, as well as encourage further adoption of solar power and satellite internet connectivity.

C. INTERNATIONAL FINANCIAL AND ACCOUNTING STANDARDS

The IFAS Project team will work towards the installation of NetSuite accounting software in the remaining 13 territories with a busy programme of implementations planned during 2025/26, and will also actively engage and enrol users onto LMS e-learning courses. A conference is planned for November 2025 to consider long-term support, governance and system sustainability needs upon conclusion of the software roll-out. As the NetSuite roll-out enters its fnal stages, several key

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INTERNATIONAL PERSONNEL TRAINING 3 AND DEVELOPMENT

OVERALL OBJECTIVE : To provide effective leadership and share knowledge and expertise through the strategic deployment of personnel.

SPECIFIC AIMS

International personnel training and development objectives for 2024/25 included supporting territorial training colleges around the world as they train new Salvation Army officers for culturally relevant ministry, especially those with less financial and personnel resources, as well as working with the International Officer Training and Development Council (‘IOTALDC’) to provide resources for leader development. Further aims were to enable and enhance usage of specific training resources by territories, such as the Inclusive Leadership Online Course and Equip Learning, to identify and prepare future Army leaders for a wide range of roles including head of department and territorial leader.

also prepared and approved for publishing, each giving guidelines and resources: one for the first five years of officership and the other for the orientation of new heads of departments.

SENIOR LEADERS’ ORIENTATION

When officer personnel are appointed to senior leadership roles in territories, they receive initial contact from senior IHQ staff during their first week in post. They also participate in an orientation that offers an overview of senior leaders’ responsibilities, processes and procedures, as well as providing soft-skills training for executive leadership. The orientation includes an online programme introducing new leaders to important aspects of their roles and relevant responsibilities in the early months of their appointments.

ACHIEVEMENTS

The IOTALDC met several times during the year, with membership drawn from across the global Salvation Army, to promote quality training and leader development of officers throughout the world.

The IOTALDC continued work to follow up on recommendations from the International Conference of Training Principals held in Nairobi, Kenya in October 2023, with a collection of papers presented during the conference and at earlier such events that was developed into a book for publication, titled A Field for Exploits II . Two important resources were

A second stage involves attending a residential conference in London, UK within their first 6–12 months in post. In this forum, leaders gather as a cohort to train and develop spiritual executive leadership skills, as well as to obtain further orientation into their roles as senior leaders. Tailored, specific development opportunities for individuals, according to their experience, are also incorporated into orientation activities, as well as further IHQ requirements such as online finance and governance training. There is also a strong mandate for all officers to establish a mentoring relationship with experienced senior leaders.

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Senior Leaders’ Orientation Conference delegates and IHQ staff with Chief of the Staff Commissioner Edward Hill

The preferred format of orientation was explored and developed during the year, as delivering some of the material online proved challenging due to time zone, language and other factors, and so more content was shared at the in-person conference.

TRAINING AND CAPABILITY DEVELOPMENT

The International Personnel team continued to monitor the training of offcer cadets and capability development for leaders during the year. The Annual Training College Report, a resource which assists IHQ and territorial leaders in maintaining international standards and practices, was updated to become more user-friendly following feedback received from colleges around the world. Work also continued on the creation of a Capability Development Framework to assist in identifying areas for increased concentration on the right developmental opportunities for offcers, especially in the early years of ministry. A new First Five Years manual was also produced, offering territories a framework in developing continued education and training for offcers in their frst fve years of ministry, to enhance standards.

LEADERSHIP COURSES

First launched in 2019, the Inclusive Leadership Course (‘ILC’) offers an online leadership programme to offcers, blending biblical values with corporate leadership principles. The programme continued to

evolve in 2024/25 and included disciplines such as coaching, team-building and change management. The course targets offcers (post fve years of service) who serve in roles as team leaders or executive directors. At the year-end, 743 offcers were registered for the ILC, with 451 ongoing participants and 292 completions.

Another platform, Equip Learning, was offcially launched in March 2024 and utilised throughout 2024/25, offering practical learning modules to all representatives of The Salvation Army who seek to develop understanding and skills under various disciplines. Short online courses include: ‘The 12 Principles of Salvation Army Finance’, ‘Mission in Motion’, ‘Cultural Intelligence – Appreciating One Another’s Culture’, ‘Global Modern Slavery and Human Traffcking Response’, ‘Disability from a Salvation Army Perspective’ and ‘Biblical Perspectives on Children and Young People’.

A pilot programme was also launched during 2024/25, whereby six emerging leaders from Africa were enrolled on a course run in partnership with the Abundant Leadership Institute. Course content includes Servant Leadership, Team Leadership, AssetBased Community Development, Strategic Planning, Leadership in Reconciliation, and Leadership Principles and Practices (Governance, Boards, Finance, Budgeting, Results).

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Delegates and staff of the International College for Offcers with the General and Commissioner Buckingham ——

INTERNATIONAL COLLEGE FOR OFFICERS

Based at Sunbury Court near London, the International College for Offcers (‘ICO’) brings together groups of offcers from around the Salvation Army world for an intensive, transformative and experiential six-week training programme.

Each six-week session provides delegates with the opportunity for a deep ongoing consideration of leadership within The Salvation Army, including topics such as personal spiritual formation, leadership, ethics, social justice, and international fnance and administration, plus time for personal, spiritual and emotional refreshment. During the year, 144 delegates attended the ICO from a wide range of territories and countries as an expression of the cultural diversity that enriches the reach and infuence of The Salvation Army globally.

FUTURE PLANS

Work will continue to review, develop and implement policies for training and leader development, including frameworks for the development of Salvation Army offcers, preparation and orientation of offcers entering leadership roles, and capabilitybuilding for leaders.

The Equip Learning platform will be expanded with additional courses and resources added for offcers and Salvationists worldwide. The ICO will

KEY STATISTICS

complete a review of its curriculum and make changes and enhancements as required to enable an increased focus on adult learning. Delivery of the senior leaders’ orientation will also be kept under review, with more content provided at the in-person conference held twice a year. Work will also continue to develop succession planning in territories around the world, ensuring potential future leaders are intentionally included on a development pathway enabling personal growth, wider experience and experiential learning.

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CRISIS 4 RELIEF

OVERALL OBJECTIVE :

To respond to and help meet the needs arising from major crises.

SPECIFIC AIMS

The International Emergency Services (‘IES’) team based at IHQ aims to support territories affected by disaster and crisis, providing technical assistance, funding and trained personnel to support relief and recovery activities.

Another key objective is to provide training courses to territories and individuals in order to strengthen local capacity, particularly in disaster-prone areas, and to assist in disaster preparedness and disaster risk reduction awareness.

weather-related disasters such as foods in Kenya (April and October 2024), Brazil (May 2024), Tanzania (May 2024), Bangladesh (August 2024), Thailand and Myanmar (October 2024), drought in Zambia and Malawi (July 2024 onwards) and storms such as a tornado in South Africa (June 2024), Hurricane Beryl in Jamaica, Grenada and St Vincent (July 2024), cyclones in India (July 2024), Typhoon Carina (Gaemi) in the Philippines (August 2024), Hurricane Rafael in Cuba (November 2024) and a cyclone in Mozambique and Madagascar (January 2025).

This year, a major focus remained upon the response to the war in Ukraine, but at the same time the IES team sought to maintain support and provisions to other natural and human-made disasters. Among those was the severe earthquake that hit Myanmar in March 2025, as well as the increased confict and displacement situation in eastern DRC, also affecting neighbouring countries such as Rwanda, Burundi and Uganda.

ACHIEVEMENTS

During the year, IES supported 69 projects in 41 countries in 33 territories. More than 650,000 people benefted from these projects. IES provided support to territories around the world, responding to severe

In terms of earth-related disasters, IES provided support following the earthquake in Vanuatu (December 2024) as well as the ongoing response to the earthquake in Myanmar (March 2025). The team also provided support to human-made disasters, such as the confict and displacement situations in DRC (December 2023 and July 2024), Haiti (November 2011) and Mozambique (January 2025), as well as the continuing confict and economic situation since the military coup in Myanmar (ongoing since 2021). IES also supported various responses to fres, including severe incidents in a Roma settlement in Slovakia (January 2025), in Nepal (May 2024) and in Liberia (December 2023). Additionally, help was given to address biological disasters, including the response to the cholera outbreak in Angola (February 2025).

34 35TH ANNUAL REPORT AND ACCOUNTS

Emergency response to Typhoon Gaemi in the Philippines

Providing support after a devastating earthquake in Myanmar

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RUSSIA–UKRAINE WAR

The Russia–Ukraine confict started on 24 February 2022. More than three years later, 6.9 million Ukrainian refugees have been recorded globally, with approximately 3.7 million internally displaced people in Ukraine according to the UN Offce for the Coordination of Humanitarian Affairs.

With coordinating leadership offered by IES, The Salvation Army has been working to support people in Ukraine and those who have fed the country. By 31 March 2025, IES had approved 137 projects

associated with the Ukraine crisis, benefting more than 500,000 people. IES not only provided the coordination and the technical, operational and strategic support for this response, but the team also arranged for the deployment and management (pre, during and post) of trained and experienced international personnel to support the local relief initiatives, the administration and the coordination of the requirements and expectations of the supporting offces.

More than play: mental health and psychosocial support activities for children in Ukraine

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TRAINING

Training courses usually feature in the annual programme of events, and IES is always willing to support capacity-strengthening of territories as they plan for disaster risk reduction and enhanced response activities. During the year, a classroom-based PREPARE training course was held in Angola for 34 delegates, with the course also delivered online over eight weeks for 24 delegates from 15 countries. Two online cash and voucher assistance courses were held over two weeks, with a total of 51 delegates from 30 countries. A highlight was the IES Team Leaders’ Conference, which took place in Thailand under the theme ‘Communication in a Humanitarian Context’ and was attended by 46 practitioners from 16 countries.

Vital preparations: emergency response training in Angola

FUTURE PLANS

KEY STATISTICS

IES will continue to support territories affected by disaster and crisis, providing technical assistance, funding and trained personnel to support relief and recovery responses, and mitigate continuing impacts of natural and human-made hazards and disasters.

During 2025/26, IES will continue oversight, management and technical guidance as required for the Ukraine crisis response across Europe, maintain work to promote and support the development of disaster-management strategies for territories and seek to improve timely reporting of project outcomes by territories to IHQ.

‘With coordinating leadership offered by IES, The Salvation Army has been working to support people in Ukraine and those who have fled the country’

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HEALTH SERVICES FOR THE 5 POOREST PEOPLE

OVERALL OBJECTIVE :

To strengthen The Salvation Army’s capacity to support poor and marginalised people in accessing quality primary health-care services as close to the family as possible.

SPECIFIC AIMS

The International Health Services (‘IHS’) desk at IHQ seeks to provide assistance, supervision and technical support to health-care facilities and health programmes around the Salvation Army world. A particular focus for the year was the launch of an International Health Review that aimed to support territories in reviewing their health facilities, nursing and midwifery training schools and adult nursing elderly care institutions to ensure they are relevant, missional, sustainable and ft for purpose, recognising The Salvation Army has a presence in more than 15,000 communities worldwide through its network of churches and health-care facilities.

ACHIEVEMENTS

The Salvation Army remains a signifcant provider of faith-based, integrated, high-quality health care, focusing on delivering services as close to the family as possible and prioritising care for poor and the most vulnerable community members. Army healthcare facilities are often situated in hard-to-reach, rural areas where others are unable or unwilling to provide health care. An example of this was seen in February 2025, when a small team from IHQ attempted to visit one of the Salvation Army clinics in Misapi, Papua New Guinea. The journey commenced at 4 am, involving a four-hour drive over challenging

The road to a rural Salvation Army health clinic in Papua New Guinea

terrain. However, the path was obstructed by a landslide, rendering further travel impossible. Even if the team had managed to continue, the journey would have required an additional hour’s drive followed by a four-hour trek on foot to reach the health facility. After discussions with the local community, the decision was made to turn back.

38 35TH ANNUAL REPORT AND ACCOUNTS

‘These hospitals and clinics often serve as focal points in their communities’

This experience provided a brief insight into the signifcant challenges faced by many individuals in accessing health care in remote areas and the service provided by Salvation Army health facilities around the world. Despite their remote location and lack of facilities, these hospitals and clinics often serve as focal points in their communities, providing safe spaces and health care to people of all faiths or none, always without discrimination. This inclusive and holistic approach is central to Army health-care facilities and health projects.

Another insight is provided by the Kenya West Territory, where The Salvation Army is implementing a three-year Integrated Mother and Child Health Project in Western Kenya, which enables access to essential services such as maternal care, clean water and nutritional support that targets mothers and children under fve. During the year, 1,825 mothers (pregnant and lactating) and 2,470 children received maternal newborn health services such as immunisations, maternal care and treatment for common diseases, with 100 kits also provided to

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Maternal and newborn health services in Kenya
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promote maternal and child health care and 150 community health workers trained and practising within local communities.

The Salvation Army’s health services continue to face signifcant challenges, including fnancial pressures, working with poorer communities who cannot afford health care, navigating increasingly complex government regulations and addressing the shortage of staff willing to serve in remote areas. Additionally, the increasing need for advanced technology, even in rural settings, adds to the complexity of delivering effective health care. Despite these challenges, The Salvation Army remains committed to providing high-quality care and seeking to serve the most vulnerable without discrimination as part of The Salvation Army’s wider mission.

To enhance the effectiveness of The Salvation Army’s international development work, the Serve, Measure, Improve, Learn, Equip and Share (‘SMILES’) initiative was launched to promote the generation of high-quality data for evidence-based learning and decision-making. The collection of improved data for health-care facilities is a key component of this work. During the period under review, a clear road map was developed for SMILES implementation from 2025 to 2027, including actionable points to embed SMILES as a standard way of working, establish a coherent vision for = ae international development, develop staff capacity, strengthen the impact-measurement system and facilitate shared learning. An audit conducted in the frst quarter of 2025 assessed existing capacity and identifed gaps to inform ongoing development and implementation. This work will > aime help to strengthen the capacity of Salvation Army health-care Area ' workers to collect accurate data ee needed to facilitate evidence-based decisions and monitor better trends related to diseases and illness in many communities.

35TH ANNUAL REPORT AND ACCOUNTS 39

This should help the Army to respond more effectively and provide more targeted services.

The Salvation Army’s International Health Review was offcially launched in June 2024. It aims to support territories in reviewing their health facilities, nursing and midwifery training schools, and adult nursing elderly care institutions to ensure they are relevant, missional, sustainable and ft for purpose. This initiative is part of a broader effort to review the Army’s institutional footprint and modernise services. As part of the health review, an India Health Strategy Meeting was held in Kanniyakumari, India. The meeting was attended by 32 participants from all six Indian territories and IHQ staff. This gathering of territorial leadership and hospital administrators provided an opportunity to discuss the future direction of health ministry in India. During the meeting, participants refected on the past impact of the health ministry and realistically assessed the current situation. Discussions emphasised the importance of various community health approaches, governance and standards within existing facilities. Time was also dedicated to working with each territory to create actionable plans for the way forward in terms of enhanced service delivery and the rightsizing of health-care facilities.

Salvation Army nursing and midwifery schools and colleges around the world continue to shape the lives, skills and passions of thousands of health workers. These institutions play a crucial role in

KEY STATISTICS

supporting national efforts to address the shortage of health workers that many countries face. A fagship institution, The Salvation Army Catherine Booth Hospital in Nagercoil, began its nursing education programme in 1939 with a basic diploma course. Today, it has evolved into a formal college offering both diploma and degree-level training. Named after the ‘mother of The Salvation Army’, the Catherine Booth College of Nursing operates under the motto ‘Learn to Serve’. It has become a centre of excellence in India, dedicated to fostering holistic development in nursing education.

Currently, the college hosts 200 students from diverse backgrounds, including various religions, communities and social circumstances. Many nursing students are frst-generation graduates, and this training empowers them to break the generational poverty cycle, enabling them to lift their families out of hardship and support their siblings’ education. In November 2024, 98 students graduated with a degree in nursing. Among the graduates was S. Aspath Prasanth, who was abandoned at a Salvation Army children’s home in India Eastern Territory at the age of one. Raised in the home, Aspath pursued his dream of a nursing degree at the Catherine Booth College of Nursing. He spoke of the support and encouragement provided by The Salvation Army, which empowered him to follow his dreams. Aspath now works as a staff nurse in the operating theatre at the hospital, serving others.

FUTURE PLANS

IHS will continue to provide technical support and supervision to clinics, hospitals and nursing/ biomedical colleges around the world, ensuring that all Salvation Army health programmes are technically sound, accountable, an integrated part of Salvation Army mission and meet the required standards of the country in which they are based. During 2025/26, a particular focus will be upon the ongoing International Health Review, seeking to ensure services remain relevant, missional, sustainable and ft for purpose, with a milestone review meeting due to be held in South Africa.

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FIGHTING AGAINST SEXUAL TRAFFICKING AND FOR 6 SOCIAL JUSTICE

OVERALL OBJECTIVE :

To take action to combat the massive and growing evil of sexual trafficking, and to create awareness of social injustice in the world.

SPECIFIC AIMS

The International Social Justice Commission (‘ISJC’), with its secretariat funded by the Trust and based in New York, is The Salvation Army’s strategic voice advocating for human dignity, human rights and social justice in all parts of the world. The ISJC, with the International Moral and Social Issues Council (‘IMASIC’) and the International Modern Slavery and Human Trafficking Response Council (‘IMSHTRC’), exercises leadership in determining The Salvation Army’s policies and practices in the international social justice arena. This year, major aims were to build up modern slavery and human trafficking responses, to engage with United Nations working committees and forums, and to grow the work of the ISJC in campaigning for social justice.

ACHIEVEMENTS

The ISJC works closely with those who have a track record of seeking God’s justice for the world, in order to learn from them, distil experience and share lessons with others. Areas of ISJC attention and global engagement include, but are not limited to, poverty, racism, sexism, refugees and asylum seekers, indigenous peoples, climate change, gender-based violence, and modern slavery and human traffcking. In the period under review, the following were notable achievements:

UNITED NATIONS: The ISJC, refecting the international Salvation Army, campaigns for a holistic understanding of people and an integrated global plan for fair, sustainable and equitable development for all nations. If The Salvation Army wants to continue to have a voice in the global community, it is essential that Salvationists are present at the table and have global and up-to-date knowledge of issues. During the year under review, the ISJC represented The Salvation Army at the United Nations (‘UN’) (and among numerous other bodies) seeking to build strong alliances to end extreme poverty and promote sustainable development. A highlight of the year under review was the attendance of General Lyndon Buckingham and ISJC Directors Colonels Ian and Wendy Swan at the UN General Assembly when the Pact for the Future was ratifed in September 2024. This document is the culmination of years of work by UN staff and stakeholders and months of negotiations, and seeks to transform the UN into a body that is more effcient and effective in promoting justice for all. ‘Christians, including The Salvation Army, need to lend their voice for advocacy on behalf of those most adversely affected,’ General Buckingham emphasised. ‘Such advocacy is grounded in The Salvation Army’s work with the poor and marginalised.’ Salvation Army representatives from around the world also participated in virtual and in-person meetings of the United Nations 69th Commission on the Status of Women held in March 2025. Army delegates

35TH ANNUAL REPORT AND ACCOUNTS 41

engaged in dialogue around issues such as modern slavery and human traffcking as a form of violence against women and global perspectives on gender roles, adding to debates among a varied and diverse group of practitioners.

Survivor G (the pseudonym ‘G’ has been chosen by the survivor, with some details changed in her account and pixellation added to the image to protect her identity)

MODERN SLAVERY AND HUMAN TRAFFICKING:

The Salvation Army’s international response to modern slavery and human traffcking (‘MSHT’) around the world continued to evolve during 2024/25. This global, multi-layered response surrounding advocacy, prevention and intervention is a crucial part of the work of the ISJC. The Salvation Army is deeply committed to fghting MSHT with a theological and historical mandate, and is uniquely equipped and has a role to play in this vital work.

The Salvation Army drives community-led efforts to respond to modern slavery and human traffcking in 134 countries. Specifc outcomes from the MSHT response provided by territories during the year, as resourced and supported by the ISJC, included the following:

The following story of transformation illustrates the individual life impacts that lie behind the summary statistics.

G experienced much loss throughout her life, having been displaced from the genocide in Rwanda as a child, and as a consequence had lost much of her support network and family. As an adult, she followed prospects of a job overseas and did not know she was going to be taken to India. G was exploited and left extremely unwell with injuries that needed treatment, resulting in her requiring hospital care. G was supported by a non-

42 35TH ANNUAL REPORT AND ACCOUNTS

governmental organisation (‘NGO’) that helped her to get well enough to return home, where she desperately wanted to be reunited with her daughter. The NGO contacted The Salvation Army in Rwanda to identify any support that she could access, as she had returned with no money and chronic health-care needs. Salvation Army staff in Rwanda communicated with G by phone before she returned, so she was familiar and comfortable with them before her journey back.

G was referred to a specialist shelter to meet some of her basic needs on arrival and to access counselling. However, the shelter could only support her for one month, and after this she still had no regular income with which to take care of herself going forward. Salvation Army staff developed a reintegration plan with her to meet some of her ongoing needs and supported her in her ambition to set up a hair salon, in which she had previous experience.

G shares: ‘The Salvation Army was incredibly helpful in providing me with the materials to start my salon. They provided me with a grant to rent a house for three months and paid for my health insurance. They continued to offer support and guidance throughout the process of starting and running my salon, which was helpful because when they came it encouraged me and helped me to stay focused and motivated.’

G has been successfully running the salon for more than six months and her customer base is growing, giving her enough income to pay the rent and meet her basic needs. To help with ongoing future requirements, G is also saving through a local savings group. G now has access to free health care and peer support through the health care she receives. The Salvation Army continues to encourage her in her journey of reintegration, as she dreams of getting a bigger salon to meet the demand.

Annual report of the MSHT response

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43

RESEARCH AND COMMUNICATIONS: A number of signifcant research projects were also progressed by ISJC staff during the year as The Salvation Army continued to act as advocates and activists in social justice. The ISJC social media platforms were also actively used during 2024/25 to provide a framework to demonstrate the international work of The Salvation Army and to share outcomes with governments and other partners. A large body of social justice resources produced by ISJC are publicly available and can be accessed from the ISJC website at: https://www.salvationarmy.org/isjc/ resource.

KEY STATISTICS

FUTURE PLANS

The ISJC will continue to act as the strategic voice of The Salvation Army, advocating for human dignity, human rights and social justice in all parts of the world. Partnering closely with those who have a record of seeking God’s justice for the world, the ISJC will look to both learn from and contribute to a strong Salvation Army world view. The Salvation Army will carry on partnering with other religious groups, other NGOs, the UN and others towards the vision of a world where all people can experience life in all its fullness.

The ISJC will also work with territories to continue to develop locally relevant MSHT response strategies, particularly in areas where existing capacity is low and poorly resourced. Expansion of MSHT collaborations with partner organisations will be explored, targeting the addition of fve new partnerships by 2026/27. Further work will also be undertaken to build partnerships with United Nations forums seeking to provide not only a rich collaboration, but a synergetic space for considering new possibilities and solutions in order to create a just world where all may fourish.

‘The ISJC will continue to act as the strategic voice of The Salvation Army, advocating for human dignity, human rights and social justice in all parts of the world’

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35TH ANNUAL REPORT AND ACCOUNTS

45

FINANCIAL REVIEW

Group accounts for The Salvation Army International Trust, incorporating Reliance Bank Limited and The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited as subsidiaries of the Trust, are presented for 2024/25, as well as charity results, assets and liabilities for The Salvation Army International Trust (see pages 62 to 89 for the Accounts). The Group accounts reflect notable differences to the charity-only results, most especially for investments, debtors and prepayments, bank balances and current liabilities (see Notes 25–28 to the Accounts). The Group accounts exclude SAITCo, which is the managing trustee.

The commentary below relates to the charity-only results for The Salvation Army International Trust, with separate comments offered on the subsidiaries and Group accounts in the labelled section on pages 55–56.

The net movement in funds for the year ended 31 March 2025 was an increase of £13.65 million (2025) compared to an increase of £42.49 million (2024). Variances contributing to the total net movement in funds are outlined below.

INCOME

The primary income streams of the Trust are donations from Salvation Army territories to the International Self-Denial Fund to support the work of the global Army and Headquarters Support contributions from Salvation Army territories to fund the operation of IHQ.

Total income decreased from £74.02 million (2024) to £67.63 million (2025). External donations and legacies decreased from £16.56 million (2024) to £4.01 million (2025) as a significant donation was received from an external donor during 2024. Contributions from Salvation Army territories to the International Self-Denial Fund decreased from £28.17 million (2024) to £27.40 million (2025). Donations from Salvation Army territories increased from £10.02 million (2024) to £14.47 million (2025). Headquarters Support funding from Salvation Army

territories showed a small increase from £10.65 million (2024) to £10.88 million (2025).

Investment income increased slightly from £7.64 million (2024) to £8.55 million (2025), while income from charitable activities remained stable. Gains on disposal of properties increased from a gain of £219k (2024) to a gain of £1.57 million in (2025) due to the sale of five residential properties.

A qualifying charitable donation of £100,000 was received from Reliance Bank Limited in 2025, the same as 2024.

The following pie charts illustrate the sources of income for 2024/25 and contributions to the International Self-Denial Fund:

The net movement in funds for the year ended 31 March 2025 was an increase of £13.65 million (2025)

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INCOME 2024/25

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Gain on Property
Investment
Disposal 2%
Income 6%
Charitable Activities 1%
—
Fund-Generating
Activities 19%
Donations and A
Legacies 24%
----- End of picture text -----

----- Start of picture text -----
Self-Denial Fund 35%
International
IHQ Support 13%
----- End of picture text -----

CONTRIBUTIONS TO INTERNATIONAL SELF-DENIAL FUND 2024/25

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South Pacific and
East Asia 4%
Africa 5%
South Asia 1% ee
Europe 16%
Americas and
Caribbean 74%
| -
----- End of picture text -----

35TH ANNUAL REPORT AND ACCOUNTS 47

EXPENDITURE

Expenditure across the six charitable activities in which The Salvation Army International Trust is engaged is detailed in Note 10 in the Accounts. Spending on charitable activities totalled £50.51 million (2025) representing a decrease of £1.93 million on the previous year. Financial assistance to Salvation Army territories decreased from £30.52 million (2024) to £29.43 million (2025).

Expenditure of £13.22 million (2025) was

also incurred on International Personnel and Development, £5.07 million (2025) on World Mission and £1.41 million (2025) on Crisis Relief, reflecting the cost of some of the strategies in which the Trust is engaging, as referenced earlier in this report. The cost of raising funds, relating primarily to investment management costs and the cost of letting of property, had a small increase from £1.84 million (2024) to £1.99 million (2025).

‘Spending on charitable activities totalled £50.51 million (2025)’

The pie charts on page 49 illustrate 2024/25 expenditure on charitable activities and the geographic spread of the support of overseas work:

Women at Dnipro Corps, Ukraine, taking part in creative activities to help their well-being. As well as material needs, The Salvation Army provides emotional support for people affected by war

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EXPENDITURE ON CHARITABLE ACTIVITIES 2024/25

Health Services for the Poorest People 1%

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Social Justice 2%
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----- Start of picture text -----
Crisis Relief 3%
World Mission 10%
International Personnel Training
and Development 26%
Assistance to Salvation Army
Territories (Note 11) 58%
SUPPORT OF OVERSEAS WORK 2024/25
South Pacific and
East Asia 9%
South Asia 18%
Africa 38%
Europe 18%
Americas and
©
Caribbean 17%
35TH ANNUAL REPORT AND ACCOUNTS 49
----- End of picture text -----

SUPPORT OF OVERSEAS WORK 2024/25

Other notable variances contributing to the total net movement in funds include, most notably, net losses on investment assets of £3.16 million from a gain of £21.04 million (2024), reflecting market conditions and representing both the realised and unrealised gains arising on sales and the market value of investments held at year-end.

The net movement in funds for the year ended 31 March 2025 was £13.65 million. Total funds of £418.10 million were held at year-end.

FUTURE PLANS

The Trustee seeks to maintain the strong financial position of the Trust and will continue to explore means to increase the scale and scope of charitable activities, while continuing to encourage Salvation Army territories to move towards financial selfreliance through the provision of targeted financial support and other resources.

The two large-scale international projects currently underway will continue to materially impact the Accounts of the Trust during 2025/26, being the upgrade of IT infrastructure and the implementation of cloud-based accounting software for financially supported territories. There are no anticipated property projects that will require significant grants in the next year.

GOING CONCERN

The Trustee reviews the financial plans of the Trust on an ongoing basis as part of a programmed budget cycle, including consideration of principal financial risks; it also receives and reviews cashflow forecasts identifying any liquidity risks.

The operation of the Trust and ability to meet the objectives outlined throughout this report are recognised as impacted by external events with associated global and national economic impacts and inflationary pressures. Since 31 March 2025 to the date of the signing of these financial statements, the Trustee has considered the effect of external crises on the Trust as a going concern, its resilience through this period and the effect on the assets and funds of the Trust.

The Trust holds a strong balance sheet with availability and liquidity of cash and unrestricted investments. While current liabilities including amounts due to Salvation Army territories at the 2024/25 year-end total £8.68 million net, current assets are £71.41 million, of which £60.79 million is held in highly liquid current asset investments and cash at bank.

The Trustee is confident the Trust is well placed to meet the Ukraine/Russia crisis and other external events, and to continue to achieve its grant-making and other objectives due to its strong financial position, investment strategy and reserves policy (see below), all underpinned by the governance structures of SAITCo.

The Trustee is satisfied that the Trust has sufficient resources to continue operating for the foreseeable future following review by the Audit Committee of a going-concern assessment to March 2027. The Trustee has not identified any material uncertainties related to going concern and the accounts are therefore prepared on a going-concern basis.

INVESTMENTS

Listed investments (see Note 25 in the Accounts) are managed under the terms of an investment management agreement with Sarasin & Partners LLP. The investment manager is required to make investments on behalf of the Trust in line with benchmarks that have been set and against which performance is measured.

The Investment Committee, which sits to review investment performance, receives periodic reports on matters pertinent to its investment policy and this facilitates discussion which, in turn, enhances the committee’s understanding of the relationship between its Christian conviction and ethos and investment return; and, even more importantly, the positive effect that its policy can have on companies which themselves may (or may not) be seeking to improve conditions in many parts of the world. The reports are also occasionally tabled at full board meetings, so that those directors who do not sit on the Investment Committee have an opportunity to add to the debate and have greater understanding of the issues that the Trust can tackle through its

50 35TH ANNUAL REPORT AND ACCOUNTS

investment policy. SAITCo has established an ethical investment policy to reflect The Salvation Army’s ethical and moral stance, which is required to be followed by the appointed investment manager. No breaches to this policy have been reported to SAITCo during the year.

The SAITCo ethical investment policy excludes investment in companies which derive more than 10% of their revenues in aggregate from any of the following categories:

For the avoidance of doubt in relation to subparagraphs (c) and (d) above, ‘weapons’ refers to both nuclear and conventional weapons. In addition, investment is excluded in companies with disregard for human rights and/or the pollution of the environment. The following table gives the long-term ranges and current weightings expressed in percentages of the Trust’s investment funds:

ASSET TYPE YEAR-END POSITION
AT 31/03/25 LONG-TERM RANGE WEIGHTINGS
Fixed Income 10–20% 14.2%
Equities 70–90% 80.5%
Liquid Assets 0–10% 5.3%
Total 100%

For the year ended 31 March 2025, the portfolio total return amounted to 1.1%, with the impact of the ethical exclusions on equities detrimental by -0.15% over the period.

Equity market returns were dominated during 2024 by the large US technology stocks, with significant fluctuation and uncertainty in the first quarter of 2025 affecting the year-end result. Equity markets have started to price in policy shifts, including deregulation, trade tensions and a renewed focus on traditional energy, triggering a rotation away from the larger technology companies into value-oriented sectors such as industrials, energy and financials. The start of 2025 was also marked by rising uncertainty

around the Federal Reserve’s interest-rate path, with the impact of higher tariffs and sticky inflation suggesting rates would be higher for longer, dampening bond-market optimism and weighing on rate-sensitive sectors.

Investment strategy going forward will continue to be closely monitored by the SAIT Investment Committee in consideration of external events and emergent market conditions.

35TH ANNUAL REPORT AND ACCOUNTS 51

GRANTS

In supporting the Army’s work overseas, territories and regions produce annual budget proposals, covering all aspects of their operations, that are reviewed at IHQ. Annual grants from the Trust to territories are considered as part of the annual IHQ budget process, with proposals reviewed by the International Finance Board, approved by SAITCo and then paid quarterly in advance to each financially supported territory and region (see Note 11 in the Accounts).

Payments from IHQ to territories are made according to the terms of an International Payments Procedure Manual for IHQ (reviewed in June 2025), which outlines controls over banking transfers, assessment of overseas banking institutions for risk, identification and assessment of situations where funds paid to territories may be remitted on to third parties, controls over international payments direct to overseas suppliers, controls over transporting and controlling cash overseas and prohibitions on the use of non-mainstream banking money-transfer organisations.

RESERVES

The total funds of the Trust at 31 March 2025 amounted to £418.10 million, comprising £82.44 million in restricted funds and £335.66 million in unrestricted funds, which includes £327.91 million in designated funds. The General Reserve held £7.75 million at year-end, which meets the target level for free reserves. The Trustee continues to keep the matter of reserves under review, examining any historic fund with minimal movement in the past few years, mindful of the legislative framework in place and applicable updates to charity law.

RESTRICTED FUNDS

A restricted fund can only be used for a specific charitable purpose. The restriction may be declared by the donor when making the gift. Restricted funds held by the Trust include territorial donations and legacies specified for international use. Where possible, the intention continues to be to use restricted donations and legacies in the year of receipt, except where the gift is sufficiently large to be used over a longer period or is used for support of multi-year programmes.

DESIGNATED FUNDS

The Self-Denial Fund Reserve represents amounts held to ensure sufficient funds are available to make operational grants to supported territories that are paid in advance on a quarterly basis. The aim of the Trustee is for the balance on this Reserve to be sufficient to fund one year’s expenditure in support of overseas work. The balance as at 31 March 2025 of £27.28 million is equivalent to 13.2 months’ expenditure. The Investment Appreciation Fund (£90.57 million) represents realised and unrealised gains and losses on investments which are still subject to market risk, and the Investment Property Revaluation Fund (£45.38 million) represents the surplus on revaluation of tenanted properties held for investment purposes.

Other material designated amounts at 31 March 2025 relate to a reserve held to fund future replacement of the IHQ building (£23.34 million), and an International Property Project Reserve (£2.58 million) held to provide additional property project funding to territories over the next three to four years.

Other material Designated Funds include reserves of £52.02 million supporting the balances held and invested in the USA on behalf of SAIT to generate income for specific purposes. These are Medical Services Support (£9.42 million), Schools Services Support (£4.58 million) and the Officers’ Support Endowment Fund (£38.03 million). In addition, an International Financial and Accounting Standards Implementation Reserve (£2.63 million) is held to fund provision of cloud-based accounting software to territories over the next year and an IT Development Reserve (£2.80 million) is held to fund IT infrastructure improvements in territories over the next two years. A Leadership Development Reserve (£1.66 million) is held to fund the enhancement of training and personal development of officers over the next three to four years with a further reserve held to meet Out of Budget Grants to Territories (£1.75 million) over the next three to four years.

An International Schools Development Reserve (£5.17 million) is held to provide additional schools project funding to territories over the next two to three years. A Children’s Homes Support Reserve (£2.46 million) is held to provide ongoing support to improve children’s homes facilities over the next three to four years and

52 35TH ANNUAL REPORT AND ACCOUNTS

Members of The Salvation Army Safe Water team celebrate the completion of the construction of a well in Anuradhapura, Sri Lanka

a Mission Support Reserve (£6.84 million) is held to provide additional project funding to territories over the next year.

GENERAL RESERVE

The General Reserve represents the working capital required to fund the day-to-day needs of the Trust. The aim of the Trustee is for the balance on the General Reserve to cover equivalent to 6.0 months’ expenditure on headquarters administration costs. The current balance of £7.75 million meets the target level for free reserves.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustee acknowledges its responsibilities relating to the management of risk. A formal risk management programme continues to operate, allowing risks to be identified, classified and prioritised in terms of potential occurrence and impact. The Board of Directors of SAITCo has appointed a Risk Management Committee, consisting of ten members, which is chaired by an external legal/risk advisor and includes an Independent Non-Executive Director of SAITCo.

A Risk Register is maintained and kept under regular review by the Risk Management Committee. The Risk Management Committee works with the Risk Owner of each major risk to ensure acceptable action is taken to manage the risk and to establish suitable systems to reduce the likelihood of harmful outcomes occurring and the impact on the organisation should they arise.

In addition to the above framework, a range of emergency protocols are in place which allow SAITCo to actively monitor the impact of material external crises upon the operations of the Trust, as well as those of Salvation Army territories, with working parties appointed by SAITCo as needed to undertake tasks in specific areas and provide regular updates to the Board considering the impact of material external crises upon global Salvation Army operations, the financial position of the Trust, the reserves policy of the Trust, the investment portfolio of the Trust and associated logistical matters.

A significant work project was progressed by the Risk Management Committee during 2023/24, supported by an external consultant engaged by SAITCo, to review existing risk management protocols and the formatting of the risk register against latest Charity Commission guidance and sectoral best practice.

35TH ANNUAL REPORT AND ACCOUNTS 53

A revised and refreshed risk register format was finalised by the Committee and approved by SAITCo for implementation from January 2024, with considerable work undertaken during 2024/25 to present applicable risks in the new format, which places additional emphasis upon scoring of inherent and residual risks and analysis of cyber, data protection and environmental risks, among other changes.

KEY RISK

A serious safeguarding incident resulting in harm to a child, vulnerable adult or other person and subsequent reputational damage to the local/international Salvation Army and/or requests from territories for additional IHQ financial support.

National economic and/or political crises adversely impacting Salvation Army operations in a territory, prompting additional emergency support from IHQ.

IHQ support for territories impacted by national government controls targeted at foreign NGOs and/or Christian organisations.

Negative/adverse publicity affecting public perception of The Salvation Army internationally.

Risk exposure to SAITCo and SAIT due to sole ownership of Reliance Bank Limited, including financial and reputational risk.

Investment risk for SAIT portfolio including but not limited to inflation risk, shortfall risk, country risk, currency risk, interest-rate risk, volatility risk, liquidity risk, manager risk and market risk.

The main risks and uncertainties faced by the Trust, as detailed in the Risk Register at the end of the financial year under review, are outlined below in topdown priority order, together with a summary of the mitigating strategies being pursued to manage these risks:

MANAGING STRATEGY

Ongoing development of safeguarding policies and procedures for IHQ and all Salvation Army territories. IHQ support offered to territories to address safeguarding incidents involving child protection and legal specialists.

Continuous IHQ monitoring of economic and political contexts on a country-by-country basis. Development of crisis-management protocols for IHQ interventions.

Continuous IHQ monitoring of national political contexts on a country-by-country basis. External consultants and/ or legal counsel offer training, resources and advice to IHQ staff to address specific circumstances.

Communications Office at IHQ to monitor global press coverage and manage media relationships in consultation with Salvation Army territories.

An additional Director with banking expertise was recruited to the SAITCo Board in May 2019 and remains in post with two shareholder representatives appointed to the Bank board and additional performance and riskreporting mechanisms in place from the Bank to SAITCo.

Perpetual review of investment performance and development of mitigating strategies by SAIT Investment Committee, which includes external experts and is chaired by an Independent Non-Executive Director of SAITCo.

54 35TH ANNUAL REPORT AND ACCOUNTS

SUBSIDIARY COMPANY – RELIANCE BANK LIMITED

The banking company, Reliance Bank Limited (the ‘Bank’), is a wholly owned subsidiary of the Trust. The Bank’s model leverages its specialist knowledge and skills to focus on organisations which share its values and to provide them with lending and banking facilities.

The priority of the lending team is to support those delivering positive social impact – including through charities, community and faith organisations, and social-housing providers. The Bank has also built a shared-ownership mortgage portfolio, which allowed individuals to buy their homes in small, affordable tranches and rent the remaining proportion.

The Bank achieved strong growth in its SME lending book, which increased by 28% to £80.6 million. However, as part of a strategic decision made during the reporting year, the Bank decided to withdraw any mortgage products from the market and wind down its mortgage lending book. Hence, the mortgage book saw a decline of 4% to £61.4 million.

In the year to 31 March 2025, the Bank saw in an increase of net interest income to £9.48 million (£8.72 million in 2024). Administrative costs also grew, reflecting the Bank’s strategic investment in expanding its workforce, upgrading systems and strengthening its ability to meet new regulatory requirements. The Bank’s performance for the year ended 31 March 2025 was therefore a profit before tax of £1.43 million (2024: £1.92 million).

The Bank’s capital and reserves increased to £24.72 million as at 31 March 2025 (2024: £23.0 million). The Bank’s financial strength is also reflected in its Common Equity Tier 1 (CET1) ratio, which remains solid at 19.9% (2024: 20.7%). The decline year on year is due to the growth of the lending book. Additionally, a Gift Aid donation of £0.10 million (2024: £0.10 million) was made to the Trust for the year.

The Bank’s total assets at 31 March 2025 reduced from last year to £267 million (2024: £277 million),

mainly consisting of loans to customers and balances held with other financial institutions, including the Bank of England. This decrease was primarily due to a decline in customer deposits, which fell from £252 million in 2024 to £241 million in 2025. However, the Bank continues to maintain strong liquidity levels, providing a stable foundation for future growth.

In response to the evolving economic environment, the Bank has increased its provisions by £0.1 million during the year, bringing the total to £0.5 million.

The Bank is committed to reducing its environmental impact and works closely with the Trust in this regard. For the year of this report, carbon emissions were calculated using the same scope and methodology as for the Trust, and on this basis its emissions were a total of 30 tonnes CO2e (tCO2e), made up as follows: scope 1 – zero; scope 2 – 25 tCO2e; scope 3 (part) – 5 tCO2e. Energy actions undertaken in this reporting year included a full switch to LED lighting as part of a head office refurbishment project, adding lighting sensors to refurbished floors and then reviewing the building energy operating times and settings to minimise energy consumed.

Looking forward, the challenges of inflationary pressures and the expectation of higher interest rates for longer are reflected in the Bank’s forecasts and medium-term strategic plans. The Bank continues to focus upon supporting The Salvation Army and delivering loan book growth alongside investment in its resources and systems, seeking to be recognised and respected as an important ethical bank that exists to enable positive social impact.

SUBSIDIARY COMPANY – THE SALVATION ARMY LEADERS’ TRAINING COLLEGE OF AFRICA AND RESOURCE CENTRE LIMITED

The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited (‘SALT College’) is a wholly owned subsidiary of the Trust.

During 2020/21, a restructuring was progressed for SALT College, a training facility in Nairobi, Kenya for

35TH ANNUAL REPORT AND ACCOUNTS 55

Salvation Army territories in Africa that had hitherto been operated and managed as an integral part of the Trust. This was registered in Kenya as a separate legal entity controlled by SAITCo, to which the Trust transferred assets, and so, from 1 August 2020 and during the year under review (2024/25), it is no longer reported within the charity-only accounts of the Trust but within the Group accounts. The assets transferred from the Trust to the new entity in 2020 totalling £26,309 are not material to the Trust.

The Group accounts reflect operations of the SALT College entity from 1 April 2024 to 31 March 2025. The SALT College entity held net assets on the Group Balance Sheet of £163,000 at the 2025 yearend, down from £164,000 at the 2024 year-end.

During the reporting period, the college offered adult distance-learning subjects in four major languages at foundation, certificate and diploma levels.

GROUP ACCOUNTS

The Group accounts comprise the results of The Salvation Army International Trust plus the subsidiary companies Reliance Bank Limited and The Salvation Army Leaders’ Training College of Africa and Resource Centre Limited for the period 1 April 2024 to 31 March 2025.

The net movement in funds for the Group showed an increase of £15.20 million. Net goodwill at year-end amounted to Negative £3.52 million, as set out in Note 22 to the Accounts.

Total fixed assets including investments amounted to £351.67 million. Net current assets were £71.58 million. Total funds of the Group amounted to £419.25 million at year-end.

A going-concern assessment has been undertaken for The Salvation Army International Trust, Reliance Bank Limited and Salvation Army Leaders’ Training College of Africa and Resource Centre Limited. The Trustee is satisfied the Group has sufficient resources to continue operating for the foreseeable future. The Trustee has not identified any material uncertainties related to going concern and the Group accounts are therefore prepared on a going-concern basis.

STATEMENT OF TRUSTEE’S RESPONSIBILITIES

The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law, the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, and to disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with The Charities Act 2011 as amended by The Charities Act 2022. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In relation to the audit of financial statements, the Trustee as at the date of this report has taken all the steps that they ought to have taken in order to make

56 35TH ANNUAL REPORT AND ACCOUNTS

themselves aware of any relevant audit information and to establish that the appointed auditors are aware of that information. The Trustee is not aware of any relevant audit information of which the appointed auditors are unaware.

Lamia, daughter of a weaver at The Salvation Army’s Others production centre in Jashore, Bangladesh. The project helps fund her education

The Trustee has approved this 2024/25 Annual Report and Accounts on this basis.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustee. The Trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.

For and on behalf of the directors of The Salvation Army International Trustee Company.

Commissioner Garth Niemand MBA BTh Managing Director 14 November 2025

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE SALVATION ARMY INTERNATIONAL TRUST

OPINION

We have audited the financial statements of The Salvation Army International Trust (the ‘parent charity’) and its subsidiaries (‘the group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Balance Sheet, Statement of Financial Activities (Charity Only), Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including

FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

35TH ANNUAL REPORT AND ACCOUNTS 57

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the Trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Trustee’s Report, other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEE

As explained more fully in the Trustee’s responsibilities statement set out on page 56, the Trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustee is responsible for assessing the group’s and the

58 35TH ANNUAL REPORT AND ACCOUNTS

parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, bribery act, data protection, health and safety regulation, and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

LEFT: The Salvation Army conducted emergency food-relief-kit distributions in six locations across Mozambique to address food insecurity caused by post-election protests and tropical cyclones

RIGHT: emergency responses to food insecurities caused by drought in Zambia

35TH ANNUAL REPORT AND ACCOUNTS 59

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation and the Charities Act 2011.

There are inherent limitations in the audit procedures described above, and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org. uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF THE AUDIT REPORT

In addition, we evaluated the Trustee’s and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to valuation of property, valuation of negative goodwill and allowance for impairment losses on loans and advances to customers, income recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.

This report is made solely to the charity’s Trustee, as a body in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustee as a body for our audit work, for this report, or for the opinions we have formed.

Our audit procedures in relation to fraud included but were not limited to:

Forvis Mazars LLP

Chartered Accountants and Statutory Auditor Address: 6 Sutton Plaza, Sutton Court Road, Sutton SM1 4FS

14th November 2025

Forvis Mazars LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under Section 1212 of the Companies Act 2006.

60 35TH ANNUAL REPORT AND ACCOUNTS

----- Start of picture text -----
Sukurenessa (pictured with
her daughter, Neela) . She
is an artisan working with
Others in Bangladesh– a
Salvation Army project
which is transforming lives
through job creation and
the fght against poverty
----- End of picture text -----

35TH ANNUAL REPORT AND ACCOUNTS 61

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies:
Received from Salvation Army territories
- Self-Denial Fund
3
- IHQ Support
3
- Donations
3
Other donations and legacies
5(a)
Charitable activities
6
Other trading activities
7
Investment Income
8
Gain on Disposal of Properties
Total Income
EXPENDITURE ON
Raising funds
9
Charitable activities
10
Total Expenditure
Net (Losses)/Gains on investments
18
Net Income
Transfers Between Funds
20
Other Recognised Gains
18
Net Movement in Funds
20
Reconciliation of Funds:
Total funds brought forward
Total Funds Carried Forward		 2025
Unrestricted
funds
Restricted
funds
Total funds –
Group
£000
£000
£000
27,399
-
27,399
10,875
-
10,875
99
14,373
14,472
2,307
1,724
4,031
40,680
16,097
56,777
520
44
564
15,286
-
15,286
6,499
1,090
7,589
1,568
-
1,568
64,553
17,231
81,784
14,333
187
14,520
45,018
5,571
50,589
59,351
5,758
65,109
(4,210)
1,047
(3,163)
992
12,520
13,512
(202)
202
-
-
1,684
-
1,684
-
2,474
12,722
15,196
334,334
69,719
404,053
336,808
82,441
419,249		 2024
Unrestricted
funds
Restricted
funds
Total funds –
Group
£000
£000
£000
28,169
-
28,169
10,647
-
10,647
-
10,021
10,021
147
16,475
16,622
38,963
26,496
65,459
536
-
536
12,788
-
12,788
6,123
847
6,970
219
-
219
58,629
27,343
85,972
11,472
131
11,603
47,458
5,022
52,480
58,930
5,153
64,083
21,590
(546)
21,044
21,289
21,644
42,933
446
(446)
-
1,708
-
1,708
23,443
21,198
44,641
310,891
48,521
359,412
334,334
69,719
404,053

All activities reported above, in both the current and preceding year, include Gains and Losses and relate to continuing activities. The accompanying notes on pages 66 to 89 form an integral part of these consolidated financial statements.

62 35TH ANNUAL REPORT AND ACCOUNTS

CONSOLIDATED AND CHARITY BALANCE SHEET

AS AT 31 MARCH 2025

Notes 2025 2024 2025 2024
Group Group Charity Charity
£000 £000 £000 £000
Intangible Fixed Assets
Goodwill 22(a) 173 217 173 217
Negative Goodwill 22(a) (3,688) (3,907) - -
Other Intangible Assets 22(b) 175 148 - -
(3,340) (3,542) 173 217
Tangible Fixed Assets
Properties 23 30,980 30,348 26,573 26,366
Other Tangible Fixed Assets 24 2,103 2,343 1,801 2,007
Investments 25(a) 321,930 315,194 330,829 335,194
355,013 347,885 359,203 363,567
Total Fixed Assets 351,673 344,343 359,376 363,784
Current Assets
Investments 25(a) 36,248 31,377 54,174 36,453
Stocks 127 124 127 124
Debtors and Prepayments due in more than one year 26(a) 114,530 111,558 179 186
Debtors and Prepayments due within one year 26(b) 38,039 25,371 10,318 11,027
Cash at bank and in hand 27 88,055 120,630 6,615 6,513
276,999 289,060 71,413 54,303
Less Current Liabilities
Other Creditors due within one year 28 (205,415) (225,002) (8,680) (9,286)
Net Current Assets 71,584 64,058 62,733 45,017
Total Assets less current liabilities 423,257 408,401 422,109 408,801
Creditors: Amounts Falling due after
more than one year 29 (4,008) (4,058) (4,008) (4,058)
Provisions for Liabilities 30 - (290) - (290)
Net Assets 21 419,249 404,053 418,101 404,453
Funds
Restricted Funds
Property Fund 14,399 14,380 14,399 14,380
Other Restricted Funds 68,042 55,339 68,042 55,339
20 82,441 69,719 82,441 69,719
Unrestricted Funds
Property Fund 19,314 18,861 19,314 18,861
Other Fixed Assets Fund 1,801 2,007 1,801 2,007
Share Capital Fund 12,500 12,500 12,500 12,500
Other Board Designated Funds 294,323 293,847 294,299 293,827
General Reserve 8,870 7,119 7,746 7,539
20 336,808 334,334 335,660 334,734
Total Funds 20 419,249 404,053 418,101 404,453

The accompanying notes on pages 66 to 89 form an integral part of these consolidated financial statements. Approved by The Salvation Army International Trustee Company and signed on its behalf on 14 November 2025 by:

Edward Hill – Chairman

Garth Niemand – Managing Director

35TH ANNUAL REPORT AND ACCOUNTS 63

STATEMENT OF FINANCIAL ACTIVITIES (CHARITY ONLY)

FOR THE YEAR ENDED 31 MARCH 2025

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies:
Received from Salvation Army territories
- Self-Denial Fund
3
- IHQ Support
3
- Donations
3
Subsidiary Company – Donation
4
Other donations and legacies
5(b)
Charitable activities
6
Other trading activities
7
Investment Income
8
Gain on Disposal of Properties
Total Income
EXPENDITURE ON
Raising funds
9
Charitable activities
10
Total Expenditure
Net (Losses)/Gains on Investments
18
Net Income/(Expenditure)
Transfers Between Funds
20
Other Recognised Gains
18
Net Movement in Funds
Reconciliation of Funds:
Total funds brought forward
Total Funds Carried Forward		 2025

Unrestricted
funds
Restricted
funds
Total funds
£000
£000
£000
27,399
-
27,399
10,875
-
10,875
99
14,373
14,472
100
-
100
2,285
1,724
4,009
40,758
16,097
56,855
455
44
499
153
-
153
7,463
1,090
8,553
1,568
-
1,568
50,397
17,231
67,628
1,802
187
1,989
44,941
5,571
50,512
46,743
5,758
52,501
(4,210)
1,047
(3,163)
(556)
12,520
11,964
(202)
202
-
1,684
-
1,684
926
12,722
13,648
334,734
69,719
404,453
335,660
82,441
418,101		 2024
Unrestricted
funds
Restricted
funds
Total funds
£000
£000
£000
28,169
-
28,169
10,647
-
10,647
-
10,021
10,021
100
-
100
85
16,475
16,560
39,001
26,496
65,497
510
-
510
150
-
150
6,793
847
7,640
219
-
219
46,673
27,343
74,016
1,709
131
1,840
47,419
5,022
52,441
49,128
5,153
54,281
21,590
(546)
21,044
19,135
21,644
40,779
446
(446)
-
1,710
-
1,710
21,291
21,198
42,489
313,443
48,521
361,964
334,734
69,719
404,453

All activities reported above, in both the current and preceding year, include Gains and Losses and relate to continuing activities. The accompanying notes on pages 66 to 89 form an integral part of these financial statements.

64 35TH ANNUAL REPORT AND ACCOUNTS

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

Net Cash (used in)/generated from Operating Activities
Cash Flows from Investing Activities:
Dividends, interest and rents from Investments
(Increase)/Decrease in Long-Term Bank Deposits
Proceeds from the sale of property, plant and equipment
Purchases of property, plant and equipment
Purchase of Intangible Fixed Assets
Proceeds from the sale of Investments (including Investments held in the USA)
Purchase of Investments
Gain/(Loss) on US-held Investments
Movement on Investment Funds held in USA
Net Cash Provided by Investing Activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Effects of currency translation on cash and cash equivalents
Cash and cash equivalents at the end of the reporting period (see Note B)
Note A
Reconciliation of Net Income to Net Cash Flow (used in)/generated from Operating Activities
Net Income for the Reporting Period (as per the Statement of Financial Activities)
Adjustments for:
Depreciation and amortisation
Movement in value of debt securities
Loss/(Gain) on investments
Dividends, interest and rents from investments
(Gain) on revaluation of Properties transferred to Investment
(Gain) on disposal of fixed assets
(Increase)/Decrease in Stock
Decrease/(Increase) in Debtors
(Decrease)/Increase in Creditors
Decrease/(Increase) in loans and advances to customers before provisions
Net Increase/(Decrease) in customer accounts
(Decrease)/Increase in provisions
Net Cash (used in)/generated from Operating Activities		 2025
£000
Group
(27,753)
7,589
(504)
2,656
(1,196)
(144)
209,264
(214,480)
(605)
2,645
5,225
(22,016)
125,240
-
103,224
13,512
1,255
373
2,826
(7,589)
(1,488)
(1,568)
(3)
412
(1,479)
(16,375)
(17,919)
290
(27,753)		 2024
£000
Group
25,920
6,970
(23)
376
(529)
(39)
154,226
(163,976)
-
-
(2,995)
22,925
102,347
(32)
125,240
44,641
1,184
387
(21,044)
(6,970)
(1,749)
(219)
38
(2,387)
11,966
-
-
73
25,920
Note B
Analysis of Cash and Cash Equivalents – Group
Cash at Bank
RBL Loans and Advances to Banks – recoverable on demand
Cash held by Investment Managers
Notice Deposits (less than three months)
Total Cash and Cash Equivalents
(i) Analysis of Changes in Net Debt
Cash and Cash Equivalents
Cash
Overdrafts
Cash Equivalents		 2024
in year
2025
£000
£000
£000
100,370
(31,245)
69,125
8,310
(3,608)
4,702
4,609
10,561
15,170
11,951
2,276
14,227
Balance
Balance
Movement
125,240
(22,016)
103,224
01-Apr-24
Cashflows
31-Mar-25
£000
£000
£000
104,979
(20,684)
84,295
-
-
-
20,261
(1,332)
18,929
125,240
(22,016)
103,224

35TH ANNUAL REPORT AND ACCOUNTS 65

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

The Trust is a registered Charity in England and Wales and a public benefit entity as defined in FRS 102.

The principal accounting policies adopted by the Trustee in the preparation of the financial statements have been applied consistently and are set out below:

Critical Accounting Judgements and Key Estimations

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

Apart from those involving estimates, no judgements are deemed to have had a significant effect on amounts recognised in the financial statements. Judgements would include assessing for indicators of impairment of assets or whether the Trust is party to lease arrangements and their nature. Other than investment properties, it is the Trustees' opinion that there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Other key estimates relevant to the charity include property valuations, depreciation and amortisation. The Investment Property portfolio is independently valued by a Chartered Surveyor. This valuation is based on, at a minimum, a rolling three-year revaluation plan carried out using the comparable method in accordance with the RICS Valuation Global Standards effective at the time and the fair values of properties not due for an external valuation are updated using the UK House Price Index provided by the Land Registry (see Note 25). Estimations made in calculating the depreciation of non-investment properties are detailed in paragraph (g) below.

66 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES - continued

Expenditure is charged in the Statement of Financial Activities on the accruals basis.

Transactions in foreign currencies are recorded at the rate of exchange prevailing at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate ruling on the balance sheet date. All profits and losses on exchange are included in the Statement of Financial Activities.

(e) Going Concern

The Trustee has reviewed the Trust's financial position, taking account of satisfactory levels of reserves and cash, the annual plan, and its system of financial and risk management considering potentially adverse future scenarios. The Trustee recognises the potentially material pension liability arising from participation of the Trust in The Salvation Army Employees’ Pension Fund (see Note 17) remains well placed to meet its obligations in this regard.

The Trustee has a reasonable expectation that the Trust has adequate resources to continue in operational existence in the foreseeable future following projections of the cash position under adverse income performance scenarios over 12 months following the signing of the Accounts. The Trust holds a strong balance sheet with £60.79 million (2024: £42.97 million) held in cash or short-term bank deposits and current liabilities amounting to £8.68 million (2024: £9.29 million).

The Trustee is confident the Trust is well placed to meet the ongoing global crises and other external events, including general inflationary pressures, and continues to achieve its grant-making and other objectives due to its strong financial position, investment strategy and reserves policy, all underpinned by the governance structures of SAITCo.

35TH ANNUAL REPORT AND ACCOUNTS 67

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES – continued

Negative Goodwill arising from the acquisition of Reliance Bank Limited is amortised on the following basis of: the excess up to the fair value of non-monetary assets which is recognised in profit or loss in the periods when the non-monetary assets are recovered, any excess beyond the fair value of non-monetary assets acquired recognised in profit or loss in the periods expected to be benefited. Computer software, where capitalised, is depreciated over a period of 2–6 years.

(g) Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided to write off the cost of tangible fixed assets over their estimated useful economic lives, as follows:

A Fixed Asset Property is transferred to or from Investment Properties when it first met or ceases to meet the definition of Investment Property per FRS 102 and is transferred at its fair value at the date of change in use. Any difference between the fair value of the property at transfer date and its previous carrying amount is recognised in the SOFA under Other Recognised Gains/(Losses) for transfer to Investment Properties, and under Net Gain/(Loss) on investments for transfers from Investment Properties.

The freehold property at Sunbury Court has been depreciated so as to write down the cost of the project by components, on a straight line basis, over their estimated useful economic lives at the following annual rates:

Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at historical cost unless another basis is required under applicable accounting standards, which is usually the transaction price, and are subsequently measured at their settlement value aside from Reliance Bank Debt instruments below. Financial investments are recognised at fair value through Profit and Loss – See Note 1(i) below. Trade and other debtors are recognised at the settlement amount due. Creditors and provisions are recognised where the Trust has an obligation resulting from a past event that is likely to result in the transfer of funds to a third party and the amount due can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Investment properties are held for the purpose of earning rental income or for capital appreciation or both. They are measured at fair value at the balance sheet date as detailed in Accounting Estimates (Note 1(a)) above and no depreciation is provided. Passing rents levels are guided by estimated market rents assessed as part of Investment properties valuations to the extent possible. A property achieving below market rent level at a given point in time shall continue to be classified as an Investment property for as long as the purpose listed above remains true. Salvation Army employees may occupy properties held for investment purposes on comparable terms to members of the public, in which case these properties remain Investment properties in line with FRS 102.

The aggregate surplus or deficit arising on revaluation at each period end is transferred to the Investment Property Revaluation Fund (see Note 20). Investments in subsidiary undertakings are held at cost less impairment.

68 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES - continued

(k) Funds:

A provision is recognised when there is a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. The effect of the time value of money is not material and therefore the provisions are not discounted.

(m) Subsidiary Companies

Wholly owned subsidiary companies are consolidated with the Financial Statements of the Trust on a line-by-line basis.

The banking company, Reliance Bank Limited (the ‘Bank’), is a wholly owned subsidiary of the Trust. In 2018, the Trust purchased The Salvation Army Trust's (UKI Territory) 49% interest in the Bank and invested an additional £1.5 million in the Bank's share capital. Under its new ownership model and through the delivery of its five-year strategic plan, the Bank aims to become an important, positive social-impact bank with an expanded remit in this market segment. Between December 2019 and November 2025, £16 million of additional share capital was invested by the Trust in the Bank to support its new strategic plan and future growth.

While the Trust is the Bank's parent controlling entity, a Nominations Committee comprising Non-Executive Directors of the Bank recommends appointments of Bank Directors to its board. This includes consideration of proposed Shareholder representative Directors, as and when appropriate. Ordinarily, the Bank will donate a proportion of its net taxable profits to support the mission of the Trust. This had not been the case in the earlier years, as the Bank was investing in its organisational structure and systems, but it returned to profit in the last two years with a target of a self-sustaining business model where future capital requirements are minimised.

The Salvation Army Leaders' Training College of Africa and Resource Centre Limited (SALT) is a wholly owned subsidiary of the Trust. During 2020/21, a restructuring was progressed for SALT College, a training facility in Nairobi, Kenya for Salvation Army territories in Africa that had hitherto been operated and managed as an integral part of the Trust. This was registered in Kenya as a separate legal entity controlled by SAITCo, to which the Trust transferred assets, and so from August 2020 is no longer reported within the charity-only accounts of the Trust but within the Group accounts. The assets transferred from the Trust to the new entity are not material to the Trust.

(n) Prepayments

Prepayments are valued at the amount prepaid net of any trade discount offered.

For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise cash at banks and in hand and short-term deposits with an original maturity (from date of acquisition) of less than three months, and cash held with investment managers as it is available to meet short-term cash needs of the organisation.

(p) Gains and Losses

All recognised Gains and Losses are included in the Statement of Financial Activities, and all the reported activities, in both the current and preceding years, reflect ongoing activities.

Properties reclassified to Investments are transferred at Fair Value on transfer date. Any difference between the fair value of the property at that date and its previous carrying amount is recognised in the Statement of Financial Activities. Further details on Gains and Losses can be found in Note 25.

35TH ANNUAL REPORT AND ACCOUNTS 69

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

2. BUSINESS COMBINATION – ACQUISITION

On 31 October 2018 (the acquisition date), The Salvation Army International Trust acquired the equity of Reliance Bank Limited in a cash transaction per the workings below. Reliance Bank Limited is a UK incorporated company limited by shares and authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Following acquisition, Reliance Bank Limited is a wholly owned subsidiary of The Salvation Army International Trust. Reliance Bank’s mission is to be a distinctive, solid and safe Bank with Christian and ethical values that delivers as part of the broader objectives of The Salvation Army by enabling positive social impact.

Equity Transaction : Preceding the acquisition the outstanding Reliance Bank Limited had allotted, called up and fully paid £7.5 million of £1 ordinary shares. The Salvation Army International Trust already held 51% of Reliance Bank and purchased the remaining 49% shareholding held by The Salvation Army Trust on 31 October 2018.

The estimated fair value of the Net Assets acquired benefited from a fair value uplift associated with Property, Plant and Equipment as below:

Freehold Property (per Valuation)
Other Net Assets per Accounts
Total		 £
4,400,000
8,799,631
13,199,631

Calculation of Goodwill

The total cost of acquisition is therefore £7,933,397 (original cost £3,825,000 and subsequent acquisition £4,108,397) acquiring Net Assets at fair value of £13,199,631, giving rise to negative goodwill of £5,266,234. The negative goodwill is unwound through the Statement of Financial Activities (SOFA) as set out in Note 1(f)).

The cost of acquisition represented a contingent consideration of £4,108,397 estimated at the time to be payable over 15 years and over seven years as at March 2025. The outstanding balance at March 2025 was £4,008,397 (2024: £4,058,397) (see Note 29).

70 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

3. CONTRIBUTIONS RECEIVED FROM SALVATION ARMY TERRITORIES

Territory
Angola
Australia
Bangladesh
Brazil
Canada and Bermuda
Caribbean
Congo (Brazzaville)
Democratic Republic of Congo
Denmark and Greenland
Eastern Europe
Finland and Estonia
France and Belgium
Germany, Lithuania and Poland
Ghana
Hong Kong and Macau
India Central
India Eastern
India Northern
India South Eastern
India South Western
India Western
Indonesia
Italy and Greece
Japan
Kenya East
Kenya West
Korea
Latin America North
Liberia, Sierra Leone and Guinea
Malawi
Mali and Burkina Faso
Mexico
Middle East
Mozambique
The Netherlands, Czech Republic and Slovakia
New Zealand, Fiji, Tonga and Samoa
Nigeria
Norway, Iceland and The Færoes
Pakistan
Papua New Guinea and Solomon Islands
The Philippines
Russia
Rwanda and Burundi
Singapore, Malaysia, Myanmar and Thailand
South America East
South America West
Southern Africa
Spain and Portugal
Sri Lanka
Sweden and Latvia
Switzerland, Austria and Hungary
Taiwan
Tanzania
Uganda
United Kingdom and Ireland
USA Central
USA Eastern
USA Southern
USA Western
USA National HQ
Zambia
Zimbabwe and Botswana		 Unrestricted
Self-Denial Fund		 Unrestricted
International Headquarters
Support		 Restricted
Donations Received
2025
2024		 2025
2024		 2025
2024
£000
£000
7
7
408
416
1
1
19
69
1,822
1,791
67
76
66
82
70
77
25
26
15
14
40
50
14
17
34
32
28
27
64
55
45
43
123
115
19
17
71
67
21
22
27
26
57
48
4
4
27
26
245
212
225
215
154
173
33
35
10
15
6
6
1
2
15
21
13
8
2
3
168
176
361
396
18
23
400
400
3
2
44
44
20
20
2
2

7
6
113
93
7
19
40
95
41
40
18
19
1
1
98
89
667
676
6
8
11
10
11
11
2,857
2,734
4,867
4,809
4,882
5,008
4,760
5,439
3,983
3,989
-
-
52
53
184
209
27,399
28,169		 £000
£000
1
1
801
778
2
2
2
2
629
610
5
5
5
5
6
6
18
18
1
1
32
31
57
55
39
38
3
3
29
28
8
8
4
4
7
7
8
8
8
8
7
7
13
12
1
1
77
75
8
8
9
8
14
13
2
2
1
1
1
1
1
1
3
3
1
1
1
1
124
120
292
284
5
5
109
106
6
6
4
4
4
4
1
1
1
1
20
19
3
3
4
4
4
4
1
1
2
2
89
87
173
168
1
1
2
2
1
1
954
926
1,910
1,888
1,649
1,605
2,069
2,049
1,571
1,533
60
60
4
4
8
7		 £000
£000
1
-
206
268
1
-
1
-
153
486
1
-
1
-
1
-
1
8
5
1
36
54
22
15
46
4
1
-
8
8
1
-
1
-
1
-
1
-
1
-
1
-
1
-
1
2
5
6
1
-
1
-
18
61
1
-
1
-
1
-
1
-
1
-
1
-
1
-
185
160
43
45
-
-
68
109
1
-
1
-
1
2
-
2
1
-
2
33
1
-
1
-
1
-
1
7
1
-
50
33
72
85
1
-
1
-
1
-
74
1,076
1,933
3,128
938
950
3,136
3,282
7,127
(33)
299
229
1
-
8
-
10,875
10,647		 14,472
10,021

35TH ANNUAL REPORT AND ACCOUNTS 71

NOTES TO THE ACCOUNTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

4. DONATION FROM SUBSIDIARY COMPANY Reliance Bank Limited

Unrestricted income to The Salvation Army International Trust from Reliance Bank Limited for the year was £100k (2024: £100k) to support the mission of the Trust.

The banking company, Reliance Bank Limited (the ‘Bank’), became a wholly owned subsidiary of The Salvation Army International Trust (the 'Trust') in October 2018, following the purchase of The Salvation Army Trust's (UKI Territory) 49% interest. Under this ownership model and its strategic plan, the Bank aims to become an important social-impact bank with an expanded remit in this market segment.

Reliance Bank Limited provides banking facilities to The Salvation Army and the general public. The Bank offers transactional banking services to more than 30 Salvation Army territories, providing a vital 'safe haven' for project funds and IHQ operational grants, and a secure platform for international fund transfers for the global Army. A pre-tax profit of £1,431k (2024: £1,918k) has been made in the year.

Summary Profit and Loss Account
Interest Receivable and other operating income
Interest Payable and other operating expenditure
Administration Expenditure
Operating Profit
Taxation
Retained Profit for year
Retained Reserves brought forward
Less qualifying charitable donations
Retained Reserves carried forward
Share Capital owned
Gain/(Loss) on Revaluation of Property included in the Revaluation Reserve
Summary Balance Sheet
Fixed Assets
Assets
Less than one year
Loans over one year
Liabilities
Current
Net Assets
Share Capital
Revaluation Reserve
Reserves
Shareholders' Funds		 2025
£000
14,969
(5,391)
(8,147)		 2024
£000
12,504
(3,414)
(7,172)
1,431
(210)		 1,918
(68)
1,221
2,188
(100)		 1,850
438
(100)
3,309 2,188
20,000 20,000
601 -
4,921
147,379
114,351		 4,183
161,338
111,372
266,651
(241,929)		 276,893
(253,893)
24,722 23,000
20,000
1,413
3,309		 20,000
812
2,188
24,722 23,000

The effects of differences between subsidiary and Group policies in relation to the Bank's building property valuation, including the revaluation reserve balance, were eliminated on consolidation and the impacted amounts are presented in the Group Financial Statements in accordance with Group Accounting policies (see Note 1(m)).

5. OTHER DONATIONS AND LEGACIES

a) Group
Other Donations
Legacies
b) Charity
Other Donations
Legacies		 Unrestricted
Restricted
2025
£000
£000
£000
1,589
1,733
3,322
718
(9)
709
2,307
1,724
4,031		 Unrestricted
Restricted
£000
£000
66
16,300
81
175		 2024
£000
16,366
256
147
16,475		 16,622
1,567
1,733
3,300
718
(9)
709
2,285
1,724
4,009
4
16,300
81
175		 16,304
256
85
16,475		 16,560

Total external donations and legacies decreased to £4.03 million (2024: £16.62 million) mainly due to a large restricted donation towards the Officers' Support Endowment Fund having been received during the financial year ending 31 March 2024.

72 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

6.
INCOME FROM CHARITABLE ACTIVITIES
Rents from charitable activities
Software charges
Income from publications
Income from Café 101
International Personnel Training and Development
Restricted income for the year was £44k (2024: £nil)
7.
OTHER TRADING ACTIVITIES
Conference Centre income
Rents from letting of property
Fees and Commissions receivable
Release of Negative Goodwill
Interest on Loans and Advances to Bank and Customers
Unrestricted income for the year was £15,286k (2024: £12,788k)
8.
INVESTMENT INCOME
Income from fixed interest securities
Dividends from equities
Interest on bank deposits
Income from funds held in USA
Rental on Freehold Reversionary Interest
Rents from letting of investment properties
Restricted income for the year was £1,090k (2024: £847k)		 2025
Group
£000
101
44
176
170
73
564		 2024
Group
£000
105
30
212
146
43		 2025
Charity
£000
101
44
176
170
8
499		 2024
Charity
£000
105
30
212
146
17
536 510
53
100		 47
103		 53
100		 47
103
617
175		 834
174		 -
-		 -
-
945 1,158 153 150
14,341 11,630 - -
15,286
1,263
2,083
466
1,391
200
2,186
7,589		 12,788 153
1,263
2,083
1,430
1,391
200
2,186
8,553		 150
1,187
2,041
395
1,230
204
1,913		 1,187
2,041
1,065
1,230
204
1,913
6,970 7,640

35TH ANNUAL REPORT AND ACCOUNTS 73

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

9.
RAISING FUNDS
Cost of letting of property
Investment management costs
Goodwill amortisation
Costs of subsidiary banking operations		 2025 2024 2025 2024
Group Group Charity Charity
£000
879
1,067		 £000
791
964		 £000
879
1,067		 £000
791
964
- - 43 43
12,574 9,848 - 42
14,520 11,603 1,989 1,840

Restricted expenditure for the year was £187k (2024: £131k)

10.
CHARITABLE ACTIVITIES
Activity
World Mission
Assistance to Salvation Army territories (Note 11)
International Personnel Training and Development
Crisis Relief
Health Services for the Poorest People
Fighting Against Sexual Trafficking and for Social
Justice		 2025
Grant and
Donation
funding of
activities
Activities
undertaken
directly
Support costs
Group Total
(Note 12)
£000
£000
£000
£000
-
3,064
2,007
5,071
21,752
4,927
2,743
29,422
-
9,190
4,108
13,298
-
1,075
335
1,410
-
227
67
294
-
692
402
1,094
2024
Group Total
£000
5,560
30,504
12,731
1,348
1,075
1,262		 2025
Charity Total
£000
5,073
29,425
13,216
1,410
294
1,094		 2024
Charity Total
£000
5,568
30,515
12,670
1,349
1,075
1,264
21,752
19,175
9,662
50,589		 52,480 50,512 52,441

Grant and donation funding includes operational grants paid quarterly to Salvation Army territories around the world and the onward transmission of project funding. Costs of activities undertaken directly include the direct costs associated with emergency services and other projects which are managed by International Headquarters. Support costs have been allocated over activities on a per capita basis (see Note 12).

SALT College costs are included under the International Personnel Training and Development heading. Restricted expenditure for the year was £5.57 million (2024: £5.02 million).

Activity
World Mission
Assistance to Salvation Army territories (Note 11)
International Personnel Training and Development
Crisis Relief
Health Services for the Poorest People
Fighting Against Sexual Trafficking and for Social
Justice		 2024
Grant and
Donation
funding of
activities
Activities
undertaken
directly
Support costs
Group Total
(Note 12)
£000
£000
£000
£000
-
3,647
1,913
5,560
22,665
5,106
2,733
30,504
-
8,271
4,460
12,731
-
1,056
292
1,348
-
1,002
73
1,075
-
825
437
1,262		 2023 2024 2023
Group Total Charity Total Charity Total
£000 £000 £000
4,718 5,568 4,735
32,081 30,515 32,105
14,498 12,670 14,354
1,435 1,349 1,438
161 1,075 162
1,592 1,264 1,596
22,665
19,907
9,908
52,480		 54,485 52,441 54,390

74 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

11. GRANTS AND DONATIONS PAID TO SALVATION ARMY TERRITORIES IN SUPPORT OF OVERSEAS WORK

Territory
Africa, General
Angola
Australia
Bangladesh
Brazil
Canada and Bermuda
Caribbean
Congo (Brazzaville)
Democratic Republic of Congo
Denmark
Eastern Europe
Finland and Estonia
France and Belgium
Germany, Lithuania and Poland
Ghana
Hong Kong and Macau
India National Secretariat
India Central
India Eastern
India Northern
India South Eastern
India South Western
India Western
Indonesia
Italy and Greece
Japan
Kenya East
Kenya West
Korea
Latin America North
Liberia, Sierra Leone and Guinea
Malawi
Mali and Burkina Faso
Mexico
Middle East
Mozambique
The Netherlands, Czech Republic and Slovakia
New Zealand, Fiji, Tonga and Samoa
Nigeria
Norway, Iceland and The Færoes
Pakistan
Papua New Guinea and Solomon Islands
The Philippines
Russia
Rwanda and Burundi
Singapore, Malaysia, Myanmar and Thailand
South America East
South America West
Southern Africa
Spain and Portugal
Sri Lanka
Sweden and Latvia
Switzerland, Austria and Hungary
Taiwan
Tanzania
Uganda
United Kingdom and Ireland
USA Western
USA Southern
Zambia
Zimbabwe and Botswana
Total**		 ----------------------------------------------------2025-------------------------------------------------
International
Grant funding
Additional
Activities
Service
of activities
grant for
funded by
Costs
specific costs
donations
Total*
£000
£000
£000
£000
£000
-
-
33
6
39
-
112
2
48
162
-
-
6
100
106
1
203
7
49
260
12
586
5
49
652
-
-
-
6
6
-
721
11
108
840
14
652
46
210
922
6
526
105
112
749
-
216
-
1
217
12
1,249
5
105
1,371
1
226
9
36
272
-
-
-
1
1
-
335
-
(2)
333
12
141
36
60
249
-
-
-
22
22
-
148
1
10
159
-
224
4
168
396
1
-
4
-
5
-
275
3
99
377
-

316
3
90
409
-
306
8
49
363
-
232
6
132
370
-
-
26
198
224
-
390
2
13
405
-
-
1
-
1
59
267
76
203
605
97
786
74
639
1,596
-
-
-
1
1
8
635
3
30
676
-
208
22
41
271
18
128
2
83
231
6
119
5
17
147
39
376
4
49
468
-
273
1
8
282
35
265
8
29
337
-
477
3
16
496
-
-
-
1
1
38
135
11
176
360
-
-
-
1
1
2
1,058
3
84
1,147
92
584
52
250
978
1
412
9
69
491
-
-
-
(30)
(30)
36
180
30
46
292
-
202
-
51
253
23
531
10
33
597
7
383
25
55
470
-
86
13
59
158
1
701
2
1
705
-
187
2
(218)
(29)
-
140
-
8
148
-
-
-
8
8
-
92
1
1
94
10
158
28
308
504
23
157
1
158
339
-
-
-
1
1
-
-
-
31
31
-
-
-
1
1
13
313
19
222
567
36
420
26
163
645
603
16,131
753
4,265
21,752		 2024
Total
£000
37
130
112
270
650
2
810
845
1,061
137
1,180
248
1
210
356
-
189
360
5
377
384
414
366
225
322
-
401
935
3
745
376
228
153
440
331
305
496
4
335
1
1,205
1,185
486
709
266
252
575
669
122
751
619
146
8
109
354
557
2
1
-
569
636
22,665

*International Service Costs, previously shown as 'Allowable Deductions from Self-Denial Funds', are those incurred in facilitating Salvation Army officers' service outside of their home territories.

**Grants to Russia Territory cannot be transferred into Russia in accordance with current banking restrictions imposed by the United Kingdom Government. They are transferred to the territory’s UK bank account held at Reliance Bank, where the territory will draw on them once permitted under banking regulations.

35TH ANNUAL REPORT AND ACCOUNTS 75

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

11. GRANTS AND DONATIONS ALLOCATED TO SALVATION ARMY TERRITORIES IN SUPPORT OF OVERSEAS WORK

Territory
Africa, General
Angola
Australia
Bangladesh
Brazil
Canada and Bermuda
Caribbean
Congo (Brazzaville)
Democratic Republic of Congo
Denmark
Eastern Europe
Finland and Estonia
France and Belgium
Germany, Lithuania and Poland
Ghana
Hong Kong and Macau
India National Secretariat
India Central
India Eastern
India Northern
India South Eastern
India South Western
India Western
Indonesia
Italy and Greece
Kenya East
Kenya West
Korea
Latin America North
Liberia, Sierra Leone and Guinea
Malawi
Mali and Burkina Faso
Mexico
Middle East
Mozambique
The Netherlands, Czech Republic and Slovakia
New Zealand, Fiji, Tonga and Samoa
Nigeria
Norway, Iceland and The Færoes
Pakistan
Papua New Guinea and Solomon Islands
The Philippines
Russia
Rwanda and Burundi
Singapore, Malaysia, Myanmar and Thailand
South America East
South America West
Southern Africa
Spain and Portugal
Sri Lanka
Sweden and Latvia
Switzerland, Austria and Hungary
Taiwan
Tanzania
Uganda
United Kingdom and Ireland
USA Southern
USA Western
Zambia
Zimbabwe and Botswana
General
Total**		 ----------------------------------------------------2024-------------------------------------------------
International
Grant funding
Additional
Activities
Service
of activities
grant for
funded by
Costs
specific costs
donations
Total*
£000
£000
£000
£000
£000
-
-
37
-
37
21
47
46
16
130
-
-
-
112
112
28
209
4
29
270
7
604
4
35
650
-
-
-
2
2
2
743
8
57
810
19
534
40
252
845
2
542
81
436
1,061
-
136
-
1
137
10
1,127
3
40
1,180
3
233
4
8
248
-
-
-
1
1
-
217
-
(7)
210
40
146
30
140
356
-
-
-
-
-
-
172
1
16
189
-
231
2
127
360
1
-
3
1
5
-
284
3
90
377
-

326
3
55
384
-
315
6
93
414
-
239
5
122
366
1
-
34
190
225
-
315
1
6
322
-
275
10
116
401
19
624
74
218
935
-
-
-
3
3
-
654
2
89
745
37
215
2
122
376
12
132
1
83
228
6
123
16
8
153
10
388
4
38
440
-
281
1
49
331
15
273
1
16
305
-
492
3
1
496
3
-
-
1
4
11
139
21
164
335
-
-
-
1
1
2
1,119
31
53
1,205
29
801
66
289
1,185
-
424
3
59
486
-
741
1
(33)
709
22
185
1
58
266
-
208
5
39
252
1
547
4
23
575
63
394
9
203
669
-
89
10
23
122
1
683
1
66
751
2
192
2
423
619
-
145
-
1
146
-
-
-
8
8
-
95
1
13
109
1
163
20
170
354
25
162
32
338
557
1
-
-
1
2
-
-
-
-
-
-
-
-
1
1
20
402
23
124
569
43
433
32
128
636
-
-
(31)
31
-
457
16,799
660
4,749
22,665		 2023
Total
£000
35
98
-
450
686
7
820
930
1,781
142
1,247
244
1
225
329
1
584
359
14
187
412
384
354
224
537
639
877
1
944
291
373
159
607
295
345
512
1
337
1
1,265
1,388
474
770
258
245
612
689
226
751
458
157
8
100
418
437
2
1
1
624
595
-
24,912

*International Service Costs, previously shown as 'Allowable Deductions from Self-Denial Funds', are those incurred in facilitating Salvation Army officers' service outside of their home territories.

**Grants to Russia Territory cannot be transferred into Russia in accordance with current banking restrictions imposed by the United Kingdom Government. They are transferred to the territory’s UK bank account held at Reliance Bank, where the territory will draw on them once permitted under banking regulations.

76 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

12. ANALYSIS OF SUPPORT COSTS BY ACTIVITY

ANALYSIS OF SUPPORT COSTS BY ACTIVITY
Charitable Activities
World Mission
Assistance to Salvation Army Territories
International Personnel Training and Development
Crisis Relief
Health Services for the Poorest People
Fighting Against Sexual Trafficking and for
Social Justice		 2025
2024
Management
Finance and IT
Human
Resources
Property
Depreciation
Governance
(see Note 13)
Total
Total
£000
£000
£000
£000
£000
£000
£000
£000
279
679
124
277
256
392
2,007
1,913
381
928
171
379
349
535
2,743
2,733
571
1,389
256
567
523
802
4,108
4,460
46
114
21
46
43
65
335
292
9
22
4
10
9
13
67
73
56
136
25
56
51
78
402
437
1,342
3,268
601
1,335
1,231
1,885
9,662
9,908

Depreciation on Vehicles and IT Equipment of £129k (2024: £159k) forms part of rechargeable expenditure allocated on a usage basis and is included in the functional headings above. All support costs have been allocated against Charitable Activities on a per capita basis (see Note 10).

Charitable Activities
World Mission
Assistance to Salvation Army Territories
International Personnel Training and Development
Crisis Relief
Health Services for the Poorest People
Fighting Against Sexual Trafficking and for
Social Justice		 2024
2023
Management
Finance and IT
Human
Resources
Property
Depreciation
Governance
(see Note 13)
Total
Total
£000
£000
£000
£000
£000
£000
£000
£000
308
678
102
240
234
351
1,913
1,830
440
970
145
342
334
502
2,733
2,613
717
1,581
237
558
544
823
4,460
4,261
47
104
15
37
35
54
292
278
12
26
4
9
9
13
73
69
70
155
23
55
53
81
437
418
1,594
3,514
526
1,241
1,209
1,824
9,908
9,469
GOVERNANCE COSTS
Internal Audit
External Audit
Legal and Administration (includes Trustees' Indemnity Insurance)
International Child Protection Governance
Finance and Property
Raising Funds
External Audit – Reliance Bank
Total		 2025
2024
£000
£000
580
550
222
218
550
514
278
266
255
276
1,885
1,824
378
331
2,263
2,155

13. GOVERNANCE COSTS

An Internal Audit Department carries out a cycle of reviews of the systems in operation within IHQ and in all countries where The Salvation Army is working. The external audit fee for Reliance Bank Limited is charged to expenditure on raising funds as part of their administrative expenses.

35TH ANNUAL REPORT AND ACCOUNTS 77

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

14.
PERSONNEL COSTS
Salaries and Allowances
Employer's Social Security Costs
Employer's Pension Costs		 2025
£000
11,222
1,219
951
13,392		 2024
£000
10,625
1,143
810
12,578

The Trust made a redundancy payment of £3k to an employee during the financial year (2024: £169K)

The number of employees earning more than £60,000 per annum (including employee benefits but
excluding employer's pension costs) was as follows: No. No.
£60,001 – £70,000 19 18
£70,001 – £80,000 12 13
£80,001 – £90,000 6 8
£90,001 – £100,000 5 1
£100,001 – £110,000 3 3
£110,001 – £120,000 2 1
£120,001 – £130,000 1 1
£130,001 – £140,000 2 1
£140,001 – £150,000 - -
£150,001 – £160,000 1 1
Average number of officers and employees
Salvation Army International Trust
Reliance Bank Limited
SALT College of Africa
Total		 2025
Headcount
192
65
15
272		 2024
Headcount
191
63
16
270

(i) The Salvation Army International Trust

The key management personnel of The Salvation Army International Trust and the Group comprise the General, the Chief of the Staff and International Secretaries. The total taxable allowances and benefits plus employer's NIC of key management personnel were £243k (2024: £258k).

(ii) Reliance Bank Limited

The aggregate compensation paid to the Bank’s key management personnel was £857k (2024: £838k). The Bank’s key management personnel are its Directors (Executive and Non-Executive) and other members of its Executive Committee. Eight people were classed as key management during the year, as one Executive Director resigned, and due to the restructuring of the team there are six ongoing Executive members at the end of the year, two of whom are Executive Directors. Three Executive Directors received emoluments from the Bank during the year, their remuneration in aggregate is £426k (2024: £373k) and this includes pension contributions of £45k (2024: £38k).

The highest-paid Director received emoluments of £178k (2024: £184k), including salary, benefits and pension contributions of £19k (2024: £22k). During the year, the Bank made the decision to start remunerating its Non-Executive Directors. The total remuneration paid amounted to £53k (2024: Nil). The Bank does not contribute to pension schemes on behalf of the NonExecutive Directors.

78 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

FOR THE YEAR ENDED 31 MARCH 2025

15. TRUSTEES

(i) Remuneration

The Salvation Army International Trustee Company directors, who are made up of 15 Trustees (see Trustee's report for details), comprise 10 senior Salvation Army officers and five Non-Executive Directors with specialist expertise. All Salvation Army officers receive an allowance based on length of service and other personal circumstances and, as ministers of religion, are provided with furnished accommodation and transport facilities. Salvation Army officers are required to use the accommodation provided, or another agreed alternative, as part of their ministry. Taxable allowances and benefits received during the year by the officers serving as directors ranged from £16,185 to £29,879 (2024: £3,938 to £26,922) with total emoluments of £192,111 (2024: £233,308), and they did not receive any additional remuneration for their duties as directors.

The Non-Executive Directors did not receive any remuneration for their services.

(ii) Expenses

Two Trustees (2024: two) received expenses of £2,109 (2024: £2,670) in their capacity as directors of The Salvation Army International Trustee Company. Expenses paid on behalf of Executive Directors, in respect of their executive roles are not included here. There were no expenses paid to third parties on behalf of the Trustees during the year.

16. AUDIT COSTS

The amount payable to the auditors for the audit of these financial statements amounts to £150k excluding VAT (2024: £160k). The audit of Reliance Bank Limited's financial statements amounts to £378k excluding VAT (2024: £331k). The audit of SALT College of Africa's financial statements amounts to £4k (2024: £4k).

17. PENSION COSTS

(a) Salvation Army Employees' Defined Benefit Pension Scheme

The Salvation Army International Trust participates in a multi-employer defined benefit and a defined contribution employee pension schemes, both administered by The Salvation Army United Kingdom and Ireland Territory.

The Trust contributed to The Salvation Army Employees’ Pension Fund, a funded defined benefit scheme, until April 2023 in respect of those members of staff who were eligible and had joined the scheme prior to its closure to new members on 31 December 2011. In March 2023, members of the defined benefit scheme voted to close the scheme to future service accrual with the final salary link retained. From 01 May 2023, eligible members began to contribute instead to the defined contribution scheme with enhanced employer contributions for an agreed period with the scheduled receipt of three annual lump-sum payments. The costs of the 2023 lump-sum payments were recognised at their actual value at 31 March 2023 and the A provision was recognised at 31 March 2023 for payments due in April 2024 and April 2025 to eligible Salvation Army International Trust employees participating in the Employees' Pension Fund Defined Benefit Scheme, with the April 2024 amount expensed and the April 2025 amount accrued (see Note 30). Active members of the Fund, as at 30 April 2023, were re-categorised as 'Employed Deferred Members'. As at 31 March 2025, the Trust and the Bank respectively had 27 and one Employed Deferred Members (2024: 29 and one) in the scheme.

The scheme is a multi-employer scheme incorporating five employers, and the actuary has confirmed that it is not practical to allocate the assets and liabilities of the scheme between participating employers in accordance with FRS 102.

The scheme is subject to triennial actuarial valuations, and results from the most recent one, performed on 31 March 2024, reported a surplus of £33.3 million relative to the technical provisions which corresponded to an ongoing funding ratio of 120%. The relevant share of any liability to fund past service deficits as agreed with the pension scheme trustees is charged to the SOFA.

(b) Salvation Army Employees' Defined Contribution Pension Scheme

A Defined Contributions Scheme was introduced from 1 October 2011 and 60 members of staff of The Salvation Army International Trust and 40 members of staff of Reliance Bank Limited have joined the scheme. As at 31 March 2025, 69 employees of The Salvation Army International Trust were active members of the scheme.

Auto enrolment was adopted from 1 April 2014, with employees required to opt out if they did not want to be part of the scheme. The Trust accounts for Pension Costs on the date that payments to the Schemes fall due. The costs charged in the current year are disclosed in Note 17.

All pension costs relating to the International Trust are met from Unrestricted Funds.

35TH ANNUAL REPORT AND ACCOUNTS 79

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

FOR THE YEAR ENDED 31 MARCH 2025

18. NET GAINS AND LOSSES

The following Gains/(Losses) have been recognised during the year:

The following Gains/(Losses) have been recognised during the year:
Net Gains/(Losses) on Investment Assets
(Losses)/Gains on Listed Investments (see Note 25)
Net Gain/(Loss) on revaluation of Investment Property
Release of revaluation (Gain)/Loss on disposal of Investment Property
Realised Gain/(Loss) on disposal of Investment Property
Release of revaluation surplus on transfer of Investment to Property Asset
Gain/(Loss) on revaluation of Freehold Reversionary Interest
(Loss) on revaluation of US Dollar Deposits
(Loss) on Cash Held by Investment Managers
Exchange (Loss)/Gain on revaluation of funds held in the USA
Gain on funds held in the USA
Further details on Gains/(Losses) on Investments can be found in Note 25(d).
Other Recognised Gains/(Losses)
Foreign Exchange (Losses)/Gains
Gains on revaluation of Properties transferred to Investments		 2025
Group
£000
(2,102)
1,077
(1,367)		 2024
Group
£000
12,686
(1,635)
62		 2025
Charity
£000
(2,102)
1,077
(1,367)		 2024
Charity
£000
12,686
(1,635)
62
443 (55) 443 (55)
-
265
(866)
(8)
(3,212)		 -
(525)
(114)
(4)
6,582		 -
265
(866)
(8)
(3,212)		 -
(525)
(114)
(4)
6,582
2,607
(3,163)		 4,047
21,044		 2,607
(3,163)		 4,047
21,044
2025
£000
196
1,488		 2024
£000
(41)
1,749		 2025
£000
196
1,488
2024
£000
(39)
1,749
1,684 1,708 1,684 1,710

The significant volume of transactions denominated in US dollars has given rise to exchange losses, as rates moved between $1.2623 and $1.2928 between March 2024 and March 2025.

19. TAXATION

As a registered charity, the Trust is entitled to exemptions from tax in accordance with the provisions of Section 505 of the Income and Corporation Taxes Act 1988.

80 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

20. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
RESTRICTED
Property Fund
Officers' Support Endowment Fund
International Social Justice Commission Fund
International Financial Accounting Standards Training
Other Restricted		 Balance
31/03/2024
£000
14,380
44,786
2,515
2,797
5,241
69,719		 Transfers
£000
-
-
-
-
202
202		 Income
£000
-
12,157
-
2,338
2,736
17,231		 Expenditure
£000
(246)
-
-
(3,468)
(2,044)
(5,758)		 Net Gains/
(Losses)
£000
265
-
-
-
782
1,047		 Balance
31/03/2025
£000
14,399
56,943
2,515
1,667
6,917
82,441

The Property Fund represents restricted funds used for specific property acquisitions. The Officers' Support Endowment Fund represents restricted funds used to provide grants to Salvation Army officers around the world to assist with basic support costs. Although this fund is called 'Endowment' for historical reasons, it does not meet the definition of an endowment as per the relevant Accounting Standards and is not accounted for as such in these accounts.

The International Social Justice Commission Fund represents restricted funds to support the work of the International Social Justice Commission office.

The International Financial Accounting Standards Training represents restricted project funds to support the work of the roll-out of cloud-based accounting software and training of internally established International Financial Accounting Standards around the world. All other restricted reserves are funds held for specific overseas areas of work.

Transfers to Restricted Reserves primarily related to Surplus Allocations to Disaster Funds from Board Designated Reserves.

UNRESTRICTED
Property Fund
Other Fixed Assets Fund
Reliance Bank Share Fund
Designated Funds
Property Commitments Fund
Self-Denial Fund
Investment Appreciation Fund
Investment Property Revaluation Fund
Exchange Equalisation Fund
Other Designated Funds
General Reserve
Held by Trust
Held by Subsidiaries		 Balance
31/03/2024
£000
18,861
2,007
12,500
33,734
27,819
95,253
45,671
6,988
84,383
293,848
7,539
(421)
334,334		 Transfers
£000
1,070
90
-
(258)
(5,575)
-
-
-
5,775
(58)
(1,301)
(3)
(202)		 Income
£000
-
-
-
4,180
28,722
-
-
-
2,604
35,506
14,891
14,156
64,553		 Expenditure
£000
(617)
(296)
-
(2,266)
(23,685)
-
-
-
(6,493)
(32,444)
(13,386)
(12,608)
(59,351)		 Net Gains/
(Losses)
£000
-
-
-
1,931
(2)
(4,685)
(290)
(949)
1,466
(2,529)
3
-
(2,526)		 Balance
31/03/2025
£000
19,314
1,801
12,500
37,321
27,279
90,568
45,381
6,039
87,735
294,323
7,746
1,124
336,808

The Property Fund represents funds which have been utilised to finance the acquisition of freehold and leasehold properties. The Other Fixed Assets Fund represents funds which have been used to finance the acquisition of Other Tangible Fixed Assets (per Note 23). The Reliance Bank Share Fund represents funds which have been used to finance the acquisition of additional Reliance Bank Share Capital.

The Property Commitments Fund represents funds earmarked for future property acquisitions and schemes. This includes a reserve held to fund the future replacement of the IHQ building (£23.34 million), and an International Property Project reserve (£2.58 million) held to provide additional property project funding to territories over the next 3–4 years.

The Self-Denial Fund (£27.28 million) represents amounts held to ensure sufficient funds are available to meet the commitment to make maintenance grants to supported territories payable quarterly in advance. The balance is equivalent to 12.0 months of the budgeted grants and support costs payable to overseas territories for the following year.

The Investment Appreciation Fund (£90.57 million) represents unrealised gains and losses on investments which are still subject to market risk. The Investment Property Revaluation Fund (£45.38 million) represents the surplus on revaluation of tenanted properties held for investment purposes. The Exchange Equalisation Fund represents exchange gains made, not as part of the Investment Appreciation Fund which are held to offset future exchange losses.

Other Designated Funds are held for particular purposes designated by the directors in the exercise of their discretionary powers, including reserves of £52.02 million, that are supporting the balance held and invested in the USA on behalf of SAIT to generate income for specific purposes, which are Medical Services Support (£9.42 million), Schools Services Support (£4.58 million) and the Officers' Support Endowment Fund (£38.03 million). The income generated from the Officers' Support Endowment Fund is held in a reserve (£2.83 million) which provides grants to Salvation Army officers around the world to support basic needs, and income generated from the Medical Services Support designated funds have resulted in a reserve (£1.20 million) to fund projects for Salvation Army Medical Service centres around the world. Also included is a Mission Support Reserve (£6.84 million) held to provide additional project funding to territories over the next year and an International Schools Development Reserve (£5.17 million) held to provide additional school project funding to territories over the next 2–3 years. In addition, an International Financial and Accounting Standards Implementation Reserve (£2.63 million) and IT Development Reserve (£2.80 million) are held to fund provision of cloud-based accounting software and adequate Information Technology infrastructures to territories over the next 2 years. A Leadership Development Reserve (£1.66 million) is held to fund the enhancement of training and personal development of officers over the next 3–4 years. The Children's Homes Support Reserve (£2.46 million) is held to provide ongoing support to improve children's homes facilities around the world over the next 3–4 years. The International Literature Programme Reserve (£0.95 million) is held to fund the promotion, production and translation of Salvation Army literature around The Salvation Army globally. A new reserve (£1.75 million) has been established to meet the ongoing challenges of funding out-of-budget grants to territories. The remainder of the Other Designated Funds balance is made up of a number of smaller reserves, none of which are individually material.

The General Reserve represents the working capital required to fund the day-to-day needs of The Salvation Army International Trust. The aim of the Trustee is for the balance on the General Fund Reserve to cover the equivalent of 6 months' expenditure on headquarters administration costs. The balance of £7.75 million at 31 March 2025 covers the equivalent of 6.4 months' expenditure on headquarters administration costs.

35TH ANNUAL REPORT AND ACCOUNTS 81

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

20.
MOVEMENT IN FUNDS – continued
RESTRICTED
Property Fund
Officers' Support Endowment Fund
International Social Justice Commission Fund
International Financial Accounting Standards Training
Other Restricted		 Balance
31/03/2023
£000
15,150
23,813
2,515
2,598
4,445
48,521		 Transfers
£000
-
-
-
(205)
(241)
(446)		 Income
£000
-
20,973
-
3,508
2,862
27,343		 Expenditure
£000
(245)
-
-
(3,104)
(1,804)
(5,153)		 Net Gains/
(Losses)
£000
(525)
-
-
-
(21)
(546)
Balance
31/03/2024
£000
14,380
44,786
2,515
2,797
5,241
69,719

The Property Fund represents restricted funds used for specific property acquisitions.

The Officers' Support Endowment Fund represents restricted funds used to provide grants to Salvation Army officers around the world to assist with basic support costs. Although this fund is called 'Endowment' for historical reasons, it does not meet the definition of an endowment as per the relevant Accounting Standards and is not accounted for as such in these accounts.

The International Social Justice Commission Fund represents restricted funds to support the work of the International Social Justice Commission office.

The International Financial Accounting Standards Training represents restricted project funds to support the work of the roll-out of cloud-based accounting software and training of internally established International Financial Accounting Standards around the world. All other restricted reserves are funds held for specific overseas areas of work.

Transfers from Restricted Reserves primarily related to the return of bridge funding previously met from Board Designated Reserves to cover temporary funding gaps for specific projects resulting from timing differences in restricted funds meeting the applicable recognition criteria.

UNRESTRICTED
Property Fund
Other Fixed Assets Fund
Reliance Bank Share Fund
Designated Funds
Property Commitments Fund
Self-Denial Fund
Investment Appreciation Fund
Investment Property Revaluation Fund
Exchange Equalisation Fund
Other Designated Funds
General Reserve
Held by Trust
Held by Subsidiaries		 Balance
31/03/2023
£000
19,745
2,156
12,500
32,941
26,199
74,900
47,244
7,423
83,969
272,676
6,386
(2,572)
310,891		 Transfers
£000
(293)
224
-
(1,033)
(3,595)
-
-
-
4,517
(111)
626
-
446		 Income
£000
-
-
-
2,286
29,079
-
-
-
1,265
32,630
14,044
11,955
58,629		 Expenditure
£000
(591)
(373)
-
(2,154)
(23,864)
-
-
-
(8,629)
(34,647)
(13,517)
(9,802)
(58,930)		 Net Gains/
(Losses)
£000
-
-
-
1,694
-
20,353
(1,573)
(435)
3,261
23,300
-
(2)
23,298		 Balance
31/03/2024
£000
18,861
2,007
12,500
33,734
27,819
95,253
45,671
6,988
84,383
293,848
7,539
(421)
334,334

The Property Fund represents funds which have been utilised to finance the acquisition of freehold and leasehold properties. The Other Fixed Assets Fund represents funds which have been used to finance the acquisition of Other Tangible Fixed Assets (per Note 24). The Reliance Bank Share Fund represents funds which have been used to finance the acquisition of additional Reliance Bank Share Capital.

The Property Commitments Fund represents funds earmarked for future property acquisitions and schemes. This includes a reserve held to fund the future replacement of the IHQ building (£21.56 million), and an International Property Project reserve (£2.69 million) held to provide additional property project funding to territories over the next 3–4 years.

The Self-Denial Fund (£27.82 million) represents amounts held to ensure sufficient funds are available to meet the commitment to make maintenance grants to supported territories payable quarterly in advance. The balance is equivalent to 13.2 months of the budgeted grants and support costs payable to overseas territories for the following year.

The Investment Appreciation Fund (£95.25 million) represents unrealised gains and losses on investments which are still subject to market risk. The Investment Property Revaluation Fund (£45.67 million) represents the surplus on revaluation of tenanted properties held for investment purposes. The Exchange Equalisation Fund represents exchange gains made, not as part of the Investment Appreciation Fund which are held to offset future exchange losses.

Other Designated Funds are held for particular purposes designated by the directors in the exercise of their discretionary powers, including reserves of £52.59 million, are supporting the balance held and invested in the USA on behalf of SAIT to generate income for specific purposes, which are Medical Services Support (£9.52 million), Schools Services Support (£4.62 million) and the Officers' Support Endowment Fund (£38.45 million). The income generated from the Officers' Support Endowment Fund is held in a reserve (£3.12 million) which provides grants to Salvation Army officers around the world to support basic needs, and income generated from the Medical Services Support designated funds have resulted in a reserve (£0.78 million) to fund projects for Salvation Army Medical Service centres around the world. Also included is a Mission Support Reserve (£6.56 million) held to provide additional project funding to territories over the next year and an International Schools Development Reserve (£5.61 million) held to provide additional school project funding to territories over the next 2 to 3 years. In addition, an International Financial and Accounting Standards Implementation Reserve (£2.89 million) and IT Development Reserve (£2.22 million) are held to fund provision of cloud-based accounting software and adequate Information Technology infrastructures to territories over the next 2 years. A Leadership Development Reserve (£1.98 million) is held to fund the enhancement of training and personal development of officers over the next 3–4 years. The Children's Homes Support Reserve (£2.67 million) is held to provide ongoing support to improve children's homes facilities around the world over the next 3–4 years. The International Literature Programme Reserve (£1.07 million) is held to fund the promotion, production and translation of Salvation Army literature around the Salvation Army globally. A new reserve (£1.75 million) has been established to meet the ongoing challenges of funding out-of-budget grants to territories. The remainder of the Other Designated Funds balance is made up of a number of smaller reserves, none of which are individually material.

The General Reserve represents the working capital required to fund the day-to-day needs of The Salvation Army International Trust. The aim of the Trustee is for the balance on the General Reserve to cover the equivalent of six months' expenditure on headquarters administration costs. The balance of £7.53 million at 31 March 2024 covers the equivalent of 6.6 months' expenditure on headquarters administration costs.

82 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Goodwill
Other Intangible Fixed Assets
Property Assets
Other Tangible Fixed Assets
Investments
Current Assets
Current Liabilities
Debtors over one year
Creditors over one year
Provisions for liabilities		 Unrestricted
Restricted
Funds
Funds
Total
2025
£000
£000
£000
(3,515)
-
(3,515)
175 -
175
16,581
14,399
30,980
2,103 -
2,103
285,265
68,042
353,307
126,221 -
126,221
(205,415)
-
(205,415)
114,530 -
114,530
(4,008)
-
(4,008)
- -
-		 Unrestricted
Restricted
Funds
Funds
Total
2024
£000
£000
£000
(3,690) -
(3,690)
148 -
148
15,968
14,380
30,348
2,343 -
2,343
291,232
55,339
346,571
146,125 -
146,125
(225,002)
-
(225,002)
111,558 -
111,558
(4,058) -
(4,058)
(290) -
(290)
331,937
82,441
414,378		 334,334
69,719
404,053

Unrestricted Funds also include Funds held by the Trust as Designated.

Restricted Property Assets funds include for analysis purposes historical contributions towards 99 Queen Victoria Street which is recognised in investment property assets.

22. INTANGIBLE FIXED ASSETS

(a) GOODWILL

The Negative Goodwill arising at acquisition (October 2018) represents the excess of net assets acquired over the cost of the shares purchased in Reliance Bank Limited (see Note 2).

Release of the Negative Goodwill for the year was £175k (2024: £175k) per accounting policies as set out in Note 1.

Calculation of Negative Goodwill
Cost of 49% acquisition at October 2018
Share Capital Purchased
Positive Goodwill on acquisition
Original cost of 51% shareholding
Cost of 49% acquisition at October 2018
Total cost of acquisition
Fair Value of Assets acquired – 31 October 2018
Freehold Property (per valuation)
Investments
Current Assets including loans and advances
Liabilities including customer accounts
Net Assets Acquired
Net Negative Goodwill
Write back Positive Goodwill on Acquisition
Negative Goodwill on Consolidation at Acquisition		 Acquisition
£000
4,108
(3,675)
433
3,825
4,108
7,933
4,400
70,828
114,114
189,342
(176,142)
13,200
(5,267)
(433)
(5,700)
Amortised Goodwill
Negative Goodwill
Positive Goodwill on Acquisition
Net Goodwill (Group)		 Book Value
Amortisation
2024
2025
£000
£000
(3,907)
219
217
(44)		 Book Value
2025
£000
(3,688)
173
(3,690)
175		 (3,515)

(b) OTHER INTANGIBLE FIXED ASSETS


Cost:
Brought Forward
Additions
Amortisation:
Brought Forward
Charge for the year
Net Book Value at 31 March 2025
Net Book Value at 31 March 2024		 Computer
Total
Software
(Charity)
2025
2025
£000
£000
- -
- -		 Subsidiary
Total
Computer
(Group)
Software
2025
2025
£000
£000
1,061 1,061
138 138
- - 1,199 1,199
- -
- -		 913 738
111 111
- - 1,024 1,024
- - 175 175
- - 148 148

35TH ANNUAL REPORT AND ACCOUNTS 83

NOTES TO THE CONSOLIDATED ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

23. PROPERTY ASSETS

PROPERTY ASSETS
Cost
Balance at 1 April 2024
Transfers from Investment Property
Additions during the year
Revaluation on Transfers to Investment Property
Revaluation on Transfers from Investment Property
Less: Disposals
Transfer to Tangible Fixed Assets
Transfer to Investment Property
Balance at 31 March 2025
Depreciation
Balance at 1 April 2024
Charge for the year
Eliminated: on Disposals
on Revaluation
Balance at 31 March 2025		 Long
Schemes
Total Subsidiaries
Total
Freehold
Leasehold
Overseas
in Progress
(Charity)
Land and
(Group)
Buildings
£000
£000
£000
£000
£000
£000
£000
31,421
7,753
22
536
39,732
4,661
44,393
99
-
-
-
99
-
99
141
442
-
(318)
265
694
959
-
565
-
-
565
-
565
889
-
-
-
889
-
889
32,550
8,760
22
218
41,550
5,355
46,905
(30)
(107)
-
-
(137)
(137)
-
-
-
(6)
(6)
-
(6)
-
(676)
-
-
(676)
-
(676)
32,520
7,977
22
212
40,731
5,355
46,086
10,954
2,404
8
-
13,366
679
14,045
702
160
1
-
863
269
1,132
11,656
2,564
9
-
14,229
948
15,177
(11)
(26)
-
-
(37)
-
(37)
-
(34)
-
-
(34)
-
(34)
11,645
2,504
9
-
14,158
948
15,106
Net Book Value at 31 March 2025 20,875
5,473
13
212
26,573
4,407
30,980
Net Book Value at 31 March 2024 20,467
5,349
14
536
26,366
3,982
30,348

The Transfer to Investments relates to tenanted properties that are held for investment purposes.

24. OTHER TANGIBLE FIXED ASSETS

Cost
Balance at 1 April 2024
Additions during the year
Less Disposals
Balance at 31 March 2025
Depreciation
Balance at 1 April 2024
Charge for the year
Eliminated on Disposals
Balance at 31 March 2025		 Office
IT
Total Subsidiaries
Total
Fit-Outs
Equipment Equipment
Vehicles
(Charity)
Office
(Group)
£000
£000
£000
£000
£000
£000
£000
7,231
355
1,058
38
8,682
814
9,496
22
6
135
-
163
74
237
7,253
361
1,193
38
8,845
888
9,733
-
-
(441)
-
(441)
-
(441)
7,253
361
752
38
8,404
888
9,292
5,641
200
796
38
6,675
478
7,153
163
54
130
-
347
108
455
5,804
254
926
38
7,022
586
7,608
-
-
(419)
-
(419)
-
(419)
5,804
254
507
38
6,603
586
7,189
Net Book Value at 31 March 2025 1,449
107
245
-
1,801
302
2,103
Net Book Value at 31 March 2024 1,590
155
262
-
2,007
336
2,343

Subsidiaries' Equipment includes Office Equipment, capitalised Computer Hardware and Fixtures & Fittings.

84 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

25.
INVESTMENTS
(a)(i) Group
Fixed Assets Investments
Listed Investments (See Note (d) below)
Fixed Interest
UK Government
UK Non-Government
Overseas
Sterling Certificates of Deposit maturing after One Year (see Note (b))
Equities
UK Directly Held Equities
Overseas Directly Held Equities
Investment Property (see Note (f) below)
Property – Freehold Reversionary Interest (see Note (g) below)
Funds held in the USA (see Note (e) below)
Current Assets Investments
Bank Deposits (see Note (c) below)
Listed Investments (See Note (d) below)
Sterling Certificates of Deposit maturing within One Year (see Note (b))
(a)(ii) Charity
Listed Investments
Fixed Interest
UK Government
UK Non-Government
Overseas
Equities
UK Directly Held Equities
Overseas Directly Held Equities
Subsidiary Company (Note 4)
Reliance Bank Limited – Shares at cost
Investment Property (see Note (f) below)
Property - Freehold Reversionary Interest (see Note (g) below)
Funds held in the USA (see Note (e) below)
Bank Deposits (see Note (c) below)		 Cost
Market
Value
£000
£000
14,977
14,261
11,870
11,996
686
653
2025		 Cost
Market
Value
£000
£000
11,237
10,989
19,151
19,923
890
804
2024
11,101
11,101
12,014
14,713
117,177
138,265
167,825
190,989
17,524
62,905
2,990
7,140
-
60,896		 -
-
15,145
14,422
102,486
136,425
148,909
182,563
16,544
62,215
2,990
6,875
-
63,541
188,339
321,930
16,197
16,197
20,051
20,051
36,248
36,248
224,587
358,178
14,977
14,261
11,870
11,996
686
653
12,014
14,713
117,177
138,265
156,724
179,888
20,000
20,000
17,524
62,905
2,990
7,140		 168,443
315,194
5,642
5,642
25,735
25,735
31,377
31,377
199,820
346,571
11,237
10,989
19,151
19,923
890
804
15,145
14,422
102,486
136,425
148,909
182,563
20,000
20,000
16,544
62,215
2,990
6,875
-
60,896
197,238
330,829
54,174
54,174
251,412
385,003		 -
63,541
188,443
335,194
36,453
36,453
224,896
371,647

(b) Debt Securities

Debt securities are generally held to maturity and are valued at amortised cost less impairment. £17.04 million of Sterling Certificates of Deposit held at the balance sheet date mature within three months (2024: £17.82 million), with £Nil maturing between three and six months (2024: £Nil) and £3.01 million maturing between six months and one year (2024: £7.92 million), £11.1 million maturing between one and two years (2024: £Nil)), and £Nil maturing between two and five years (2024: £Nil).

The role of debt securities in Reliance Bank’s investment strategy is to provide a significant balance of realisable assets with high credit quality counterparties. These would be accessible in the event of unexpected funding demands which would otherwise exceed the level of instant access bank deposits that is maintained together with maturing interbank term deposits. Fixed rate debt securities are used to broadly match significant customer term deposits in terms of both interest rate risk and liquidity. A spread of maturities also helps to manage the Bank's overall maturity profile.

(c) Bank Deposits
Sterling – Notice Deposits (less than three months from 31 March 2025)
Sterling – Notice Deposits (greater than three months from 31 March 2025)
US Dollars & Euros
US Dollars & Euros – Notice Deposits (greater than three months from 31 March 2025)
Loans and Advances to Banks – Deposits
Cash held by Investment Managers		 2025
2024
Group
Group
£000
£000
-
-
-
-
-
-
-
-
1,027
1,032
15,170
4,609
16,197
5,641		 2025
2024
Charity
Charity
£000
£000
7,763
7,634
5,212
4,196
17,307
10,780
8,722
9,234
-
-
15,170
4,609
54,174
36,453

35TH ANNUAL REPORT AND ACCOUNTS 85

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

(d) Movement in Listed Investments
Market Value at 1 April
Purchases in year
Sales proceeds
Amortisation
Net Gains/(Losses) – Listed Investments
Market Value at 31 March
(e) Gains/(Losses) on Investment Assets
(Losses)/Gains on Listed Investments (see Note (d) above)
Net Gain/(Loss) on revaluation of Investment Property
Release of revaluation (surplus)/deficit on disposal of Investment Property
Gain/(Loss) on disposal of Investment Property
Gain/(Loss) on revaluation of Freehold Reversionary Interest (see Note (g))
(Loss) on revaluation of US Dollar Deposits
(Loss) on Cash Held by Investment Managers
Exchange (Loss)/Gain on revaluation of funds held in the USA
Gain on funds held in the USA		 2025
2024
Group
Group
£000
£000
208,298
184,498
214,480
163,976
(209,264)
(152,476)		 2025
2024
Charity
Charity
£000
£000
182,563
151,517
133,973
116,463
(134,546)
(98,103)
(372)
(386)
(2,102)
12,686
211,040
208,298
(2,102)
12,686		 -
-
(2,102)
12,686
179,888
182,563
(2,102)
12,686
1,077
(1,635)		 1,077
(1,635)
(1,367)
62		 (1,367)
62
443
(55)
265
(525)
(866)
(114)
(8)
(4)
(3,212)
6,582
2,607
4,047
(3,163)
21,044		 443
(55)
265
(525)
(866)
(114)
(8)
(4)
(3,212)
6,582
2,607
4,047
(3,163)
21,044

Funds held in the USA are held and invested by a USA Salvation Army entity on behalf of SAIT. These funds are intended to be invested with the USA in this way for the long term and for investment appreciation purposes. Net income is remitted quarterly to SAIT, including investment income as well as fair value gains and losses. Due to the nature of these funds held with the USA, SAIT is unable to accurately determine the cost of the investment funds and as such the cost is not disclosed.

The net decrease in Funds held in USA of £2,645k (2024: £8,779k increase) results from £2,040k (2024: £1,750k) being disposed out of the portfolio, in addition to a net loss of £605k (2024: £10,629k gain).

(f) Investment Property


Cost or valuation at 01 April 2024
Additions
Net Gain from Fair Value Adjustments
Transfers from Property Fixed Asset at Fair Value
Transfers to Property Fixed Asset at Fair Value
Disposals
Cost or valuation at 31 March 2025		 2025
£000
62,215
623
1,077
676
(900)
(786)
62,905

The investment property represents tenanted properties that are held for investment purposes. During the year, there were additions to investment property at a cost of £1,299k (2024: £2,331k) and fair value as at 31 March 2025 of £700k (2024: £2,120k), giving rise to a revaluation loss of £599k (2024: £211k).

In line with the three-year revaluation rolling plan, 46 investment properties were valued individually at fair value by an external chartered surveyor using the comparison method. This valuation primarily considered vacant sales comparable evidence, with due regard to the resulting gross yields, and resulted in a revaluation gain of £161k (2024: £101k loss).

Fair value of the remaining 100 properties was measured using the applicable Land Registry house price indices to 31 March 2025, resulting in an additional revaluation gain of £1,516k (2024: £1,323k loss).

Total net losses on revaluations amounted to £1,078k (2024: £1,635k loss). Two investment properties were sold during 2024–25 (2023–24: one). During the year, two properties were transferred back to Fixed Assets for operational use.

(g) Property – Freehold Reversionary Interest

The freehold reversionary interest represents the value of the freehold interest in 99 Queen Victoria Street (adjacent to the International Headquarters building) on which a long lease has been granted and rental income of £200k (2024: £204k) per annum is receivable.

The freehold reversionary interest has been valued at the year-end by the Trustee, based on advice from an external consulting surveyor, at £7.14 million (2024: £6.9 million).

86 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

26.
DEBTORS AND PREPAYMENTS
(a) Debtors and Prepayments due in more than one year
Amounts falling due after more than one year:
Loans and Advances to Bank Customers (see (i) below)
Loans due from Salvation Army territories
(b) Debtors and Prepayments due within one year
Due from Salvation Army territories
Due from Reliance Bank Limited
Due from Salvation Army Leaders' Training College of Africa
Prepayments
Other Debtors
Loans and Advances to Bank customers (see Note (i) below)		 2025
Group
£000
114,351
179
114,530
2025
Group
£000
8,409
-
-
1,480
461
10,350
27,689
38,039		 2024
Group
£000
111,372
186
111,558
2024
Group
£000
7,919
-
-
1,477
1,598
10,994
14,377
25,371		 2025
Charity
£000
-
179
179
2025
Charity
£000
8,409
-
80
1,070
759
10,318
-
10,318		 2024
Charity
£000
-
186
186
2024
Charity
£000
7,919
-
42
1,291
1,775
11,027
-
11,027

(i) Loans and Advances to Bank customers

The role of loans and advances to customers in the Bank’s investment and operating strategy is to grow the Bank’s profit margins while maintaining a conservative lending policy and ensuring the Bank’s liquidity and overall maturity profile are not comprised. No loans have been made to group undertakings.

Recoverable on Demand:
Overdrafts
Other Loans and Advances:
Mortgages
Loans
Loans and advances to customers analysed by periods to maturity:
Recoverable:
On demand
In three months or less
In one year or less but more than three months
Loans and advances to customers analysed by periods to maturity:
In two years or less but more than one year
In five years or less but more than two years
Over five years
Collective impairment provision		 2025
£000
2
61,413
80,625
142,038
142,040
844
7,253
19,592
27,689
36,097
64,606
14,110
(462)
114,351
142,040		 2024
£000
447
63,860
61,442
125,302
125,749
830
6,669
6,878
14,377
1,608
37,231
72,902
(369)
111,372
125,749
BANK BALANCES
Sterling – Interest-bearing current accounts
– Ordinary current accounts
US Dollars, Euros and other Foreign currencies
Loans and Advances to Banks (see (i) below)
Money Market Funds
Cash and Balances at Central Bank (see (ii) below)		 2025
Group
£000
463
510
2
975
4,702
14,227
68,151
88,055		 2024
Group
£000
243
170
299
712
8,310
11,951
99,657
120,630		 2025
Charity
£000
4,117
244
2,254
6,615
-
-
-
6,615		 2024
Charity
£000
3,053
277
3,183
6,513
-
-
-
6,513

27. BANK BALANCES Sterling – Interest-bearing current accounts – Ordinary current accounts US Dollars, Euros and other Foreign currencies

35TH ANNUAL REPORT AND ACCOUNTS 87

NOTES TO THE ACCOUNTS CONTINUED

FOR THE YEAR ENDED 31 MARCH 2025

(i) Loans and Advances to Banks
Bank Balances
Recoverable on Demand
(ii) Cash and Balances at Central Bank
Balances at Central Bank
28.
CURRENT LIABILITIES – Other Creditors due within one year
Due to Salvation Army territories
Bank Customer Accounts (see (i) below)
Trade Creditors
Other Creditors, Accruals and Deferred Income
(i) Reliance Bank Customer Accounts
Current Accounts
Deposit Accounts
With agreed maturity dates or periods of notice by remaining maturity:
Repayable on demand
Three months or less but not repayable on demand
One year or less but over three months
29.
CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR
Contingent Payments due to Salvation Army Territories		 2025
£000
4,702
4,702
2025
£000
68,151
68,151
2025
Group
£000
5,624
196,086
967
2,738
205,415
2025
£000
67,189
128,897
196,086
161,673
27,701
6,712
196,086
2025
Group
£000
4,008		 2024
£000
8,310
8,310
2024
£000
99,657
99,657
2024
Group
£000
6,833
214,000
549
3,620
225,002
2024
£000
124,835
89,165
214,000
179,200
4,617
30,183
214,000
2024
Group
£000
4,058		 2025
Charity
£000
5,624
12
967
2,077
8,680
2025
Charity
£000
4,008
2024
Charity
£000
6,833
10
549
1,894
9,286
2024
Charity
£000
4,058
4,008 4,058 4,008 4,058

Salvation Army International Trust agreed to pay consideration of £4,058k to Salvation Army Trust (UK Territory) for the purchase of 49% of the shareholding of Reliance Bank Limited. This payment is contingent on the profitability of the bank.

30. PROVISIONS FOR LIABILITIES

PROVISIONS FOR LIABILITIES
Provisions at beginning of the year – 01 April 2024
Released to Statement of Financial Activities
Utilised in the year
Provisions at the end of the year – 31 March 2025		 Onerous
Contract
£000
65
-
(65)
-		 Defined Benefit
Pension Scheme
£000
225
(109)
(116)
-

The International Trust is required to make contractual payments until 2025 in relation to software which no longer meets the needs of the organisation and is therefore not expected to generate any future economic benefits for the organisation.

A provision for payments due to eligible Salvation Army International Trust employees participating in the Employees' Pension Fund Defined Benefit scheme was created at 31 March 2023 in relation to payments due to them in April 2024 and in April 2025 (see Note 17) based on the available information at the time.

The provision for the April 2024 payment has been expensed and the April 2025 provision has been accrued.

88 35TH ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2025

31. OPERATING LEASE COMMITMENTS

At 31 March 2025, The Salvation Army International Trust was committed to making the following payments in respect of operating leases:

Within one year
Between one to five years
Over five years		 2025
£000
120
182
-
302		 2024
£000
96
217
-
313

32. CAPITAL COMMITMENTS

There are no capital commitments at the year-end or in prior year.

33. GUARANTEES AND COMMITMENTS

The following guarantees and commitments of the Group have arisen from the subsidiary company, Reliance Bank Limited:

Commitments:
Undrawn formal standby facilities of one year or less
Contingent Liabilities:
Guarantees		 2025
Contract
Amount
£000		 2024
Contract
Amount
£000
9,106 8,199
-
9,106
7,694
15,893

As a matter of course, the Bank takes counter indemnities to cover guarantees extended on behalf of customers. The Bank controls designated deposits sufficient to offset the guarantees extended.

Commitments reflect approved mortgage and loan commitments awaiting drawdown.

34. TRANSACTIONS WITH SALVATION ARMY TERRITORIES AND RELATED PARTIES a) Salvation Army Territories

The Salvation Army International Trust receives contributions for the International Self-Denial Fund, International Headquarters Support and for other items from Salvation Army territories (see Note 3). Annual grants from the Trust to territories are considered as part of the annual IHQ budget process and paid quarterly in advance to each financially supported territory (see Note 11). Salvation Army territories are separate and independent legal entities.

b) Related Parties

The International Trust solely owns Reliance Bank Limited. Related party transactions between the two entiities during the financial year include interest received of £964k (2024: £630k) from the Bank, a donation of £100k (2024: £100k) received from the Bank, services of £15k (2024: £30k) paid to the Bank and bank charges of £11k (2024: £9k) paid to the Bank.

An outstanding balance of £12k (2024: £10k) due to Reliance Bank was recorded at 31 March 2025.

The balance of connected deposits at Reliance Bank Limited due to Parent Undertaking was £45.0 million (2024: £38.7 million). No Additional Share Capital of the Bank was purchased by the Trust during the year.

The Salvation Army Leaders' Training College of Africa and Resource Centre Limited (Company Registration Number: PVT-DLUKBDP Kabete Children’s Home Complex, PO Box 40575-00100, Nairobi, Kenya) is a wholly owned subsidiary of the Trust. Related party transactions between the two entities include grant payments to the college totalling £170k (2024: £251k). An outstanding balance due of £80k (2024: £42k) due from SALT College of Africa was recorded at 31 March 2025.

35. ULTIMATE CONTROLLING PARTY

36. POST BALANCE SHEET EVENTS

There were no post balance sheet events.

35TH ANNUAL REPORT AND ACCOUNTS 89